In a Progressive Tax System,if a Person Moves from One

question 56

Multiple Choice

In a progressive tax system,if a person moves from one income bracket to a higher income bracket:

• A) both the marginal tax rate and average tax rate will be higher.
• B) both the marginal tax rate and average tax rate will be lower.
• C) the marginal tax rate will be lower and the average tax rate will be higher.
• D) the marginal tax rate will be higher and the average tax rate will be lower.