Which of the Following Statements About Tax Rate Structures Is

question 11

Multiple Choice

Which of the following statements about tax rate structures is true?

• A) Regressive rate structures are illegal in the United States.
• B) A tax with a graduated rate structure must be either regressive or progressive.
• C) A proportionate rate structure is the only structure resulting in vertical equity.
• D) None of the choices are true.

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Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico designed to eliminate most tariffs on trade between them, promoting economic growth.

U.S. Trade

The exchange of goods and services between the United States and other countries, including imports and exports.

Latin American Countries

Nations located in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

North American Free Trade Agreement (NAFTA)

A treaty between the United States, Canada, and Mexico that eliminated most tariffs and trade barriers between the countries, effective from 1994 until replaced by the USMCA in 2020.