A tax that takes a _____ percentage of income as income rises is _____.A) higher;proportionalB) lower;an ability taxC) higher;progressiveD) lower;a marginal tax

Question

Shagun Grewal · Accepted Answer

Final Answer : C, Explanation :  A progressive tax takes a higher percentage of income as income rises. This is different from a proportional tax which takes the same percentage of income regardless of income level, and an ability tax (not an actual term) which is not a commonly used term in tax policy. A marginal tax is not a type of tax, but rather refers to the tax rate applied to the last dollar of income earned.

A tax that takes a _ percentage of income as income rises is _.

A) higher;proportional
B) lower;an ability tax
C) higher;progressive
D) lower;a marginal tax

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