Under a progressive tax system, the marginal tax rate could be equal to the average tax rate only when a taxpayer

A) has a very high income.
B) has a very low income.
C) is self-employed.
D) invests in a retirement plan.

Progressive Tax System

A taxation system where the tax rate increases as the taxable income increases, considered more equitable by distributing the tax burden according to ability to pay.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, reflecting the percentage of tax paid on the last dollar earned.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax payment by total income, often expressed as a percentage.