A tax in which the rate rises as income rises is called:

Question

Accepted Answer

D. Progressive

1. It serves the redistribution objective.
2. Higher income, higher rate is progressive taxation.
3. Firms pay a proportional rate.
_Source: syllabus Introductory Macroeconomics, Chapter 5, Government Budget and the Economy._

Answer

Proportional

Answer

Regressive

Answer

Flat rate

A tax in which the rate rises as income rises is called:

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