A Tax System Under Which an Individual Pays a Higher

question 202

Multiple Choice

A tax system under which an individual pays a higher fraction of his income in taxes at higher levels of income is formally described as

• A)digressive.
• B)progressive.
• C)proportional.
• D)regressive.

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Definitions:

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.

Net Discounted Cash Flow

The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.

Cash Flowing

The movement of money in and out of a business, representing its operational liquidity.