If the marginal tax rate is higher than the average rate,the tax system is:

A) proportional.
B) progressive.
C) constant.
D) regressive.

Question

If the marginal tax rate is higher than the average rate,the tax system is:A) proportional.B) progressive.C) constant.D) regressive.

David Arredondo · Accepted Answer

Final Answer : B, Explanation :  A progressive tax system means that as income increases, the percentage of tax paid also increases. Therefore, if the marginal tax rate (tax rate on the last dollar earned) is higher than the average tax rate (total tax paid divided by total income), it indicates a progressive tax system.

If the marginal tax rate is higher than the average rate,the tax system is:

A) proportional.
B) progressive.
C) constant.
D) regressive.

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