With a progressive rate structure, the average tax rate is always smaller than the marginal tax rate.
If the tax rate structure is progressive, the average tax rate is either smaller than or is equal to the marginal tax rate. Since the two can be equal, the average is not always smaller.

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In a progressive tax system, the average tax rate is always smaller than the marginal tax rate because the marginal rate applies only to the last dollar of income, while the average rate is the total tax paid divided by total income.

With a Progressive Rate Structure, the Average Tax Rate Is