A tax that takes a _____ percentage of income as income rises is _____.

Question

Quizplus · Accepted Answer

A progressive tax takes a higher percentage of income as income rises. This is different from a proportional tax which takes the same percentage of income regardless of income level, and an ability tax (not an actual term) which is not a commonly used term in tax policy. A marginal tax is not a type of tax, but rather refers to the tax rate applied to the last dollar of income earned.

A Tax That Takes a _____ Percentage of Income as Income