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Average Tax Rate
The ratio of the total taxes paid to the overall income, found by dividing the aggregate amount paid in taxes by the total income.
Income Tax Schedule
A chart or formula used to determine the tax rate applied to various levels of income.
Progressive
Describes a taxation system where the tax rate increases as the taxable amount increases, aiming to distribute the tax burden more equitably.
Regressive
A term often used to describe taxes where the tax rate decreases as the taxable amount increases.
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