A taxpayer pays __________ tax rate on additional income if the income tax structure is progressive,__________ tax rate on additional income if the income tax structure is proportional,and __________ tax rate on additional income if the income tax structure is regressive.
A) a higher; a lower; the same
B) a higher; the same; a lower
C) a lower; a higher; the same
D) the same; a lower; a higher
E) the same; a higher; a lower

Question

Quizplus · Accepted Answer

In a progressive tax structure, the tax rate increases as income increases, so a taxpayer pays a higher tax rate on additional income. 
In a proportional tax structure, the tax rate is the same for all levels of income, so the taxpayer pays the same tax rate on additional income. 
In a regressive tax structure, the tax rate decreases as income increases, so the taxpayer pays a lower tax rate on additional income.

A Taxpayer Pays __________ Tax Rate on Additional Income If