Asked by kyaira jackson on Jul 21, 2024
Verified
A tax rate that increases as the tax base increases is an example of what kind of tax rate structure?
A) Progressive.
B) Proportional.
C) Regressive.
D) Recessive.
Tax Rate Structure
The framework defining how different levels of income are taxed at various rates, often progressive, where higher income incurs higher tax rates.
Progressive
A tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on those who have higher incomes.
Proportional
A tax system where the tax rate remains constant as the taxable amount increases.
- Identify the distinctions among progressive, proportional, and regressive tax rate structures.
Verified Answer
Learning Objectives
- Identify the distinctions among progressive, proportional, and regressive tax rate structures.
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