If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is

Question

Quizplus · Accepted Answer

A tax is considered progressive if the tax rate increases as the taxable income increases. Therefore, as the taxable income decreases, if the tax rate also decreases, then the tax is not progressive. It is also not proportional since a proportional tax would have a constant tax rate regardless of the taxable income. A regressive tax, on the other hand, would have a decreasing tax rate as the taxable income increases, which is not the case here. Therefore, the best answer is C - progressive.

If, as Your Taxable Income Decreases, You Pay a Smaller