Asked by Martevus Blount on Jul 16, 2024
Verified
If the marginal tax rate equals the average tax rate,the tax system is:
A) proportional.
B) progressive.
C) digressive.
D) regressive.
Proportional Tax
A tax system where the tax rate remains constant regardless of the amount subject to taxation.
- Identify the distinctions between progressive, proportional, and regressive taxation methodologies.
Verified Answer
IJ
ibette jimenezJul 17, 2024
Final Answer :
A
Explanation :
If the marginal tax rate equals the average tax rate, it indicates a flat tax system, where everyone pays the same percentage of their income in taxes. This is known as a proportional tax system.
Learning Objectives
- Identify the distinctions between progressive, proportional, and regressive taxation methodologies.