A tax rate that increases as the tax base increases is an example of what kind of tax rate structure?
A)Progressive.
B)Proportional.
C)Regressive.
D)Recessive.

Question

Quizplus · Accepted Answer

A tax rate that increases as the tax base increases is a progressive tax rate structure. This means that individuals with higher incomes or higher levels of wealth will pay a higher percentage of their income or wealth in taxes compared to those with lower incomes or levels of wealth. This is seen as a way to achieve greater income equality and distribute the burden of taxation more fairly.

A Tax Rate That Increases as the Tax Base Increases