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.

Question

Quizplus · Accepted Answer

Under a progressive tax system, the marginal tax rate increases as income increases. The only scenario where the marginal tax rate could equal the average tax rate is when the taxpayer has a very low income, essentially being taxed at the lowest bracket for both their average and marginal rates.

Under a Progressive Tax System, the Marginal Tax Rate Could