A Tax Is Said to Be Progressive If

question 100

Multiple Choice

A tax is said to be progressive if

• A)the absolute size of the tax (in dollars)increases as income increases
• B)the wealthy pay a smaller percentage of their income than the poor
• C)the average tax rate falls as income rises
• D)the proportion of income paid as taxes increases as income increases
• E)the proceeds are used to pay for liberal political programs

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Definitions:

Utilitarianism

An ethical theory proposing that the best action is the one that maximizes happiness for the greatest number of people.

Veil Of Ignorance

A principle that one should design society's rules as if they do not know their own socioeconomic position, to ensure fairness.

Equality Of Opportunity

The ideal that all individuals should have the same chances to pursue success or advancement, regardless of their background or circumstances.

Income Distribution

How the total earnings are distributed among the members of a community.