Asked by
Shanice Calhoun
on Nov 05, 2024
Verified
If the average tax rate is less than the marginal tax rate, the tax would be
A) proportional.
B) regressive.
C) progressive.
D) uniform.
Average Tax Rate
The ratio of the total amount of taxes paid to the total tax base (income, spending, etc.), indicating the percentage of total income or spending that is paid in taxes.
Marginal Tax Rate
The marginal tax rate is the rate at which the last dollar of income is taxed, reflecting the proportion of additional income that is paid in taxes.
- Detect and distinguish the nuances among proportional, progressive, and regressive taxation methodologies.
Verified Answer
CA
Learning Objectives
- Detect and distinguish the nuances among proportional, progressive, and regressive taxation methodologies.