Asked by Bethany Hinkle on Apr 25, 2024
Verified
A tax rate that increases as the tax base increases is an example of what kind of tax rate structure?
A) Proportional.
B) Recessive.
C) Regressive.
D) Progressive.
Tax Rate Structure
The way tax rates progress from low to high based on income brackets, affecting how much tax individuals or entities owe.
Progressive
Referring to a tax system in which the tax rate increases as the taxable amount increases.
- Grasp the concept of progressive, proportional, and regressive tax rate structures.
Verified Answer
EV
Evelyn Villasenor7 days ago
Final Answer :
D
Explanation :
A tax rate that increases as the tax base increases is an example of a progressive tax rate structure. This means that the more a person earns or the higher their income level, the more they will pay in taxes as a percentage of their income. This type of tax structure is often used to achieve greater income equality by placing a greater burden on those with higher income levels.
Learning Objectives
- Grasp the concept of progressive, proportional, and regressive tax rate structures.