The best technical description of a progressive tax is a:
A)tax which takes more money from the rich than from the poor.
B)tax likely to discourage incentive.
C)more equitable tax than a regressive one.
D)tax which takes a higher proportion of extra dollars received as income rises.
E)tax which falls directly on those in the high income brackets.

Question

Quizplus · Accepted Answer

A progressive tax takes a higher proportion of extra dollars received as income rises. This means that as a person's income increases, they will pay a higher percentage of taxes on their additional income. This system is designed to be more equitable as it taxes people according to their ability to pay.

The Best Technical Description of a Progressive Tax Is A