Under a _____ structure, the marginal income tax rate rises and the average tax rate decreases as personal income falls.

Question

Quizplus · Accepted Answer

A progressive tax structure is one in which the marginal income tax rate increases as personal income rises, meaning that those who earn more pay a higher percentage of their income in taxes. Conversely, as personal income falls, the marginal income tax rate decreases, resulting in a lower average tax rate for those with lower incomes. This type of tax structure is intended to distribute the tax burden more equitably across income levels.

Under a _____ Structure, the Marginal Income Tax Rate Rises