If the marginal tax rate is less than the average rate,the system is
A)proportional.
B)regressive.
C)progressive.
D)liberal.

Question

Quizplus · Accepted Answer

A regressive tax system means that the average tax rate decreases as income increases. If the marginal tax rate (the rate at which additional income is taxed) is less than the average rate, this means that the tax burden on high-income earners is proportionally lower than on low-income earners, making the system regressive.

If the Marginal Tax Rate Is Less Than the Average