The tax in which the ratio of tax to income increases as a taxpayer's income rises is called a

Question

Quizplus · Accepted Answer

A progressive tax is one in which the ratio of tax to income increases as a taxpayer's income rises, meaning that wealthier individuals pay a higher percentage of their income in taxes than those with lower incomes. This is the opposite of a regressive tax, in which the percentage of tax paid decreases as income increases, and a proportional tax, in which everyone pays the same percentage of their income. Sumptuary taxes and luxury taxes are not related to the ratio of tax to income.

The Tax in Which the Ratio of Tax to Income