Asked by Denia Martinez on Jul 02, 2024
Verified
Under a progressive income tax,the average tax rate
A) decreases as income increases.
B) remains constant at all levels of income.
C) increases as income increases.
D) initially decreases,then increases,as income increases.
Progressive Income Tax
A taxing mechanism in which the tax rate increases as the taxable amount or income increases, placing a higher burden on those who earn more.
Average Tax Rate
The ratio of the total amount of taxes paid to the taxpayer's total income, representing the percentage of income paid in taxes.
- Comprehend the principle of a progressive tax framework and its effects on the distribution of income.
Verified Answer
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Andre De Freitas6 days ago
Final Answer :
C
Explanation :
Under a progressive income tax system, the average tax rate increases as income increases. This is because higher-income individuals are taxed at a higher rate than lower-income individuals. As a result, the percentage of income that is paid in taxes also increases as income increases.
Learning Objectives
- Comprehend the principle of a progressive tax framework and its effects on the distribution of income.