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To Say That a Tax Is Progressive Means That

Question 7

Multiple Choice

To say that a tax is progressive means that


A) the receipts from the tax are used for research and development.
B) it is a tax on income.
C) the tax affects the distribution of income.
D) the poor pay a smaller proportion of their incomes for the tax than the rich.
E) the tax rate declines with increasing income levels.

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