If the marginal tax rate is less than the average tax rate, the tax system is

Name: If the marginal tax rate is less than the average tax rate, the tax system is
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A regressive tax system means that as income increases, the percentage of taxes paid decreases. If the marginal tax rate (the tax rate on the next dollar earned) is less than the average tax rate (total taxes paid divided by total income), it means that the tax burden on higher earners is lower than on lower earners, which is regressive.

If the Marginal Tax Rate Is Less Than the Average