Which of the following is required to achieve progressivity for a particular tax?
A) An average tax rate above the marginal tax rate (implying that the average tax rate is falling with income)
B) A constant tax rate for all incomes
C) A marginal tax rate equal to the average tax rate (implying that the average tax rate is rising with income)
D) A marginal tax rate equal to the average tax rate (implying that the average tax rate is falling with income)
E) A marginal tax rate above the average tax rate (implying that the average tax rate is rising with income)
Correct Answer:
Verified
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