Which of the following is False?
A) A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base.
B) The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system.
C) An example of a proportional tax is the tax on gasoline.
D) An example of a progressive tax is the federal tax on gifts.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Under a progressive tax rate system, the average tax rate also increases as the tax base increases. Therefore, statement B is false.

Which of the Following Is False