A tax for which the rate varies directly with the income of the person taxed is known as a(n):
A) regressive tax.
B) progressive tax.
C) proportional tax.
D) flat tax.
E) excise tax.

Question

Quizplus · Accepted Answer

A tax for which the rate varies directly with the income of the person taxed is known as a progressive tax. This means that as a person's income increases, their tax rate also increases. This is often done in an effort to generate more revenue from those who can afford to pay more, while providing some relief for lower income individuals.

A Tax for Which the Rate Varies Directly with the Income