Asked by
Nuttakorn Manee
on Nov 05, 2024
Verified
If the marginal tax rate is less than the average tax rate, the tax would be
A) proportional.
B) regressive.
C) progressive.
D) uniform.
Average Tax Rate
The ratio of total taxes paid to total income, representing the overall percentage of income that is taken by taxes.
Marginal Tax Rate
The rate at which the last dollar of a taxpayer's income is taxed, indicating how much of any additional income will be taken in taxes.
- Determine and discern the disparities between proportional, progressive, and regressive tax structures.
Verified Answer
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Learning Objectives
- Determine and discern the disparities between proportional, progressive, and regressive tax structures.