Which of the following is false?
A) A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base
B) The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system
C) An example of a proportional tax is the tax on gasoline
D) An example of a progressive tax is the federal tax on gifts
E) None of these

Question

Quizplus · Accepted Answer

In a proportional tax rate structure, the average tax rate remains constant. In a progressive tax rate system, the average tax rate may change depending on the level of income.

Which of the Following Is False