A progressive tax is one in which
Answer and explanation
Correct answer: B. the tax rate rises as income rises
- Step 1: Higher earners pay a larger percentage of their income. Answer: the tax rate rises as income rises. Why not the others: the same rate applies to all incomes: That is a proportional tax. the rate falls as income rises: That is a regressive tax. tax is charged only on goods: That is an indirect tax.
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