With a regressive tax system, as the level of income increases in an economy, the average tax rate will:
A)increase.
B)decrease.
C)remain constant.
D)either increase or decrease.

Question

Quizplus · Accepted Answer

In a regressive tax system, the average tax rate decreases as income increases because the tax takes a larger percentage of income from lower-income earners than from higher-income earners.

With a Regressive Tax System, as the Level of Income