If a person's income tax rate decreases by 10 percent when her income increases by 100 percent, then the tax system is

Question

Quizplus · Accepted Answer

A regressive tax system is characterized by a decrease in the tax rate as the income or the base subject to taxation increases. In this scenario, the person's income tax rate decreases when her income increases, which aligns with the definition of a regressive tax system.

If a Person's Income Tax Rate Decreases by 10 Percent