alleryStart learning →The income tax is described as which kind of tax?
AAn excise tax
BA progressive tax
CA regressive tax
DA proportional tax
Answer & Solution
Correct answer: B. A progressive tax
1. Taxes are classified by how the rate moves with income.
2. Different federal taxes fall differently across incomes.
3. The income tax is a progressive tax.
4. That means the tax rates increase as a household's income increases.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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