A progressive tax is one where the percentage charged on income ______________ as income increases.

A) increases and then decreases
B) is constant
C) decreases
D) increases

Progressive Tax

A taxation system where the tax rate increases as the taxable amount (income or profits) increases, making it proportionately more taxing on higher earners.

Income Increases

Refers to a situation where an individual's or entity's earnings grow over a period, leading to higher financial resources.