If the marginal tax rate is less than the average tax rate as taxable income increases, the tax structure is
A)regressive.
B)proportional.
C)progressive.
D)unfair.

Question

Quizplus · Accepted Answer

If the marginal tax rate is less than the average tax rate as taxable income increases, this indicates that the tax burden decreases as income increases. This is a regressive tax structure, as it disproportionately affects lower-income individuals. The more income someone makes, the lower their tax rate is as a percentage of their income. This is often seen as unfair and regressive.

If the Marginal Tax Rate Is Less Than the Average