If the tax rate increases with an increase in the tax base,the tax is said to be:
A)regressive in nature.
B)a progressive tax.
C)a proportional tax.
D)an indirect tax.
E)inequitable in nature .

Question

Quizplus · Accepted Answer

A tax is considered progressive when the tax rate increases with an increase in the tax base, meaning that individuals with higher incomes pay a higher percentage of their income in taxes. This is often seen as a way to promote greater income equality, as those who can afford to pay more are asked to contribute a greater amount. Alternatively, a regressive tax would be one in which the tax rate decreases as income increases, and a proportional tax would be one in which the tax rate remains the same regardless of income level.

If the Tax Rate Increases with an Increase in the Tax