Under a progressive tax structure in which tax rates rise with income levels ________.

Question

Quizplus · Accepted Answer

Under a progressive tax structure, tax rates rise with income levels. This means that as individuals earn more, they will pay a higher percentage of their income in taxes. The marginal tax rate is the percentage of tax paid on the last dollar of income earned, while the average tax rate is the total tax paid divided by total income earned. Since tax rates are rising with income levels, the marginal tax rate will be greater than the average tax rate.

Under a Progressive Tax Structure in Which Tax Rates Rise