Asked by
Jordan Johnson
on Oct 13, 2024Verified
Under a progressive income tax,as income increases
A) taxes increase at the same rate as income;if income increases by 10%,taxes increase by 10%.
B) taxes decreases as a share of income.
C) absolute tax payments increase,but the average tax rate declines.
D) taxes increase as a percent of income.
Progressive Income Tax
A taxing mechanism in which the tax rate increases as the taxable amount of income increases, taxing higher incomes at higher rates.
Average Tax Rate
The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.
Absolute Tax Payments
The total amount of taxes paid by an individual or entity without considering the tax rate or income.
- Absorb the fundamentals and distinguishing elements of progressive, regressive, and proportional taxes.
- Absorb information on the workings of marginal and average tax rates and their effect on taxable income.
Verified Answer
AP
Learning Objectives
- Absorb the fundamentals and distinguishing elements of progressive, regressive, and proportional taxes.
- Absorb information on the workings of marginal and average tax rates and their effect on taxable income.