Under a regressive tax system, the marginal tax rate for high income taxpayers is

A) higher than the marginal tax rate for low income taxpayers.
B) the same as the marginal tax rate for low income taxpayers.
C) lower than the marginal tax rate for low income taxpayers.
D) is unknown relative to the low income tax payer.

Marginal Tax Rate

The percentage rate at which your final dollar of earnings is taxed, denoting the tax percentage applied to your income within each tax bracket you fall into.

Regressive Tax System

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.

Taxpayers

Individuals or entities that are required to make payments to the government based on income, property, goods, and services.