Which of the Following Statements About a Progressive Tax Rate

question 54

Multiple Choice

Which of the following statements about a progressive tax rate structure is false?

• A) Progressive rates increase as the tax base increases.
• B) Progressive rates reflect the theory of the declining marginal utility of income.
• C) The federal income tax has always used a progressive rate structure.
• D) Progressive rates result in greater vertical equity than a proportionate rate.

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