If the marginal tax rate is less than the average tax rate, the tax would be

Name: If the marginal tax rate is less than the average tax rate, the tax would be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the marginal tax rate is less than the average tax rate, it indicates a regressive tax system. In a regressive tax system, as income increases, the tax rate decreases. This means that lower-income individuals pay a higher percentage of their income in taxes compared to higher-income individuals.

If the Marginal Tax Rate Is Less Than the Average