A tax rate system characterized by higher marginal tax rates as income increases is known as

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A tax rate system that imposes higher tax rates on higher incomes is known as a progressive tax system. This means that individuals with higher incomes pay a larger percentage of their income in taxes than those with lower incomes. This tax system is often designed to be more fair and to help redistribute wealth to support social welfare programs.

A Tax Rate System Characterized by Higher Marginal Tax Rates