Which of the following best describes a progressive tax system?

Question

Accepted Answer

The tax rate increases as income increases. A progressive tax system is one in which the tax rate rises as the taxable amount (income) increases. This means higher-income earners pay a larger percentage of their income as tax. It is designed to reduce income inequality by placing a heavier burden on the wealthy.

Answer

A) The tax rate remains constant regardless of income level

Answer

B) The tax rate decreases as income increases

Answer

C) The tax rate increases as income increases

Answer

D) The same amount of tax is paid by all individuals

Which of the following best describes a progressive tax system?

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