In a progressive tax system, the marginal tax rate exceeds the average tax rate.

Name: In a progressive tax system, the marginal tax rate exceeds the average tax rate.
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In a progressive tax system, as income increases, the marginal tax rate (the rate on the next dollar of income) is higher than the average tax rate (total taxes paid divided by total income), reflecting the increasing tax burden on higher income levels.

In a Progressive Tax System, the Marginal Tax Rate Exceeds