Which of the following statements concerning a regressive tax rate structure is true?
A)A regressive tax rate structure is justified by the tax policy of distributive justice.
B)A regressive rate structure is justified by the theory of the declining marginal utility of income.
C)Under a regressive rate structure,the average tax rate for high-income taxpayers is less than the marginal tax rate.
D)None of the above statements is true.

Question

Quizplus · Accepted Answer

A regressive tax rate structure is not justified by distributive justice or declining marginal utility of income, and under such a structure, the average tax rate decreases as income increases, which contradicts statement C.

Which of the Following Statements Concerning a Regressive Tax Rate