Practice mode Monetary, Fiscal And Incomes Policy, And Inflation

If people with higher incomes pay a larger percentage of their income in tax, what kind of income tax structure is this?

Correct answer D. Progressive

Explanation

A progressive tax takes a rising share of income as income increases, for example through higher tax bands, whereas a regressive tax takes a falling share.

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If people with higher incomes pay a larger percentage of their income in tax, what kind of income tax structure is this?

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If people with higher incomes pay a larger percentage of their income in tax, what kind of income tax structure is this?

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