In a progressive tax structure,

A) the marginal tax rate exceeds the average tax rate.
B) vertical equity exists.
C) the average tax rate rises as income falls.
D) all the choices.

Progressive Tax Structure

A tax system in which the tax rate increases as the taxable amount or income increases, placing a heavier burden on those who can afford to pay more.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed.

Vertical Equity

A principle in taxation that says taxpayers with a higher ability to pay should contribute more in taxes.