If a tax is progressive, then

Question

Quizplus · Accepted Answer

In a progressive tax system, as the tax base (such as income) increases, the marginal tax rate (the rate applied to the next dollar of income) also increases. This means that individuals or entities with higher incomes will pay a higher percentage of their income in taxes on their last dollar earned compared to those with lower incomes, making the marginal tax rate greater than the average tax rate (total taxes paid divided by total income).

If a Tax Is Progressive, Then