A tax for which the average tax rate decreases with income is defined as a
A) regressive tax.
B) proportional tax.
C) neutral tax.
D) progressive tax.

Name: A tax for which the average tax rate decreases with income is defined as a A) regressive tax. B) proportional tax. C) neutral tax. D) progressive tax.
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Question

Quizplus · Accepted Answer

A regressive tax is one where the average tax rate decreases as income increases, meaning lower-income individuals pay a higher percentage of their income compared to higher-income individuals.

A Tax for Which the Average Tax Rate Decreases with Income