In a progressive tax system, the marginal tax rate increase as income increases

Question

In a progressive tax system, the marginal tax rate increase as income increases but the average tax rate does not change as income increases. the marginal tax rate and the average tax rate are the same for every income level and the same as income increases. the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate. the marginal tax rate and the average tax rate increase as Income levels increase and the marginal tax rate exceeds the average tax rate.

Explanation / Answer

Ans:

In a progressive Tax System:

d:The Marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate .

A progressive tax is an expense in which the duty rate increments as the assessable sum increments. The term progressive alludes to the way the assessment rate advances from low to high, with the outcome that a citizen's normal expense rate is not exactly the individual's minor duty rate.A progressive assessment tax is characterized as an assessment whose rate increments as the payer's wage increments. That is, people who gain high earnings have a more prominent extent of their salaries taken to pay the assessment.

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