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In a degressive tax system, what happens to the tax rate after a certain higher income limit?

AIt becomes proportional (fixed rate)

BIt drops to zero

CIt continues to increase indefinitely

DIt varies each year

Answer:

A. It becomes proportional (fixed rate)

Read Explanation:

  • After the tax base crosses a certain threshold, the degressive system applies a uniform tax rate, combining progressive and proportional features


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