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A Progressive Tax System Is One in Which

Question 5

Multiple Choice

A progressive tax system is one in which:


A) tax rates are directly proportional to inflation rates.
B) people at higher-income levels pay tax at a higher rate than people at lower-income levels.
C) tax rates are inversely related to inflation rates.
D) people at higher-income levels pay tax at a lower rate than people at lower-income levels.
E) there are no exemptions or deductions available from taxable income.

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