Which of the Following Is True of Progressive Tax

question 14

Multiple Choice

Which of the following is true of progressive tax?

• A)People who make more money pay less total taxes.
• B)The marginal tax rate increases as income increases.
• C)The percentage of income paid out decreases as income increases.
• D)People who are poor receive the proceeds of the tax.
• E)The percentage of income paid out increases as income decreases.

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Definitions:

Vertical Analysis

An analysis that compares each item in a current statement with a total or key amount within the same statement.

Financial Statements

Financial reports that summarize the effects of events on a business.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements in terms of the amount and percentage of change.

Base Year

A specific year chosen as a point of comparison for financial or economic data over time.