Suppose the marginal tax rate is 37 percent for an income level of $50, 000 and 39 percent for an $80, 000 income.This implies that the underlying tax structure is _____ in nature.

Question

Quizplus · Accepted Answer

The marginal tax rate increasing with income level indicates a progressive tax structure, where the tax rate increases as income increases. This means that those with higher incomes will pay a higher percentage of their income in taxes than those with lower incomes.

Suppose the Marginal Tax Rate Is 37 Percent for an Income