Question

Which of the following is a progressive tax system?

• A. A system where the tax rate decreases as the taxable amount increases.
• B. A system where the tax rate increases as the taxable amount increases.
• C. A system where the tax rate remains the same regardless of the taxable amount.
• D. A system where taxes are levied on goods and services rather than income.

Answer 1

Answer:

B. A system where the tax rate increases as the taxable amount increases.

• A progressive tax is a system where the tax rate rises with the amount of taxable income. Income tax is a common example.