An income tax system is ________ if marginal tax rates increase as income increases.

Question

Quizplus · Accepted Answer

A progressive income tax system is one where marginal tax rates increase as income increases. This means that individuals with higher incomes pay a larger percentage of their income in taxes than those with lower incomes. This type of tax system is often seen as more equitable, as it aims to reduce income inequality by shifting more of the tax burden onto those who are better able to afford it.

An Income Tax System Is ________ If Marginal Tax Rates