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A progressive tax means the tax rates do what as a household's income increases?
AStay flat
BReach zero
CIncrease
DDecrease
Answer & Solution
Correct answer: C. Increase
1. The word progressive describes the direction of the rate.
2. The income tax is a progressive tax.
3. That means the tax rates increase as a household's income increases.
4. A regressive tax moves the other way.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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