If the marginal tax rate is greater than the average tax rate, the tax structure is described as regressive.

Question

Quizplus · Accepted Answer

If the marginal tax rate is greater than the average tax rate, the tax structure is described as progressive, not regressive. A regressive tax structure would have a higher tax burden on lower-income individuals, while a progressive tax structure would have a higher tax burden on higher-income individuals.

If the Marginal Tax Rate Is Greater Than the Average