If the marginal tax rate facing a consumer on the last dollar of earned income is greater than the average tax rate,the tax system is ________.

Question

Quizplus · Accepted Answer

A progressive tax system is one in which the marginal tax rate increases as income increases, and in which the marginal tax rate facing a consumer on the last dollar of earned income is greater than the average tax rate. This means that as a consumer's income increases, the percentage of their income that they pay in taxes also increases.

If the Marginal Tax Rate Facing a Consumer on the Last