A Tax System Where the Average Tax Rate Increases with Income

question 94

Multiple Choice

A tax system where the average tax rate increases with income is a _____ system.

• A) regressive
• B) proportional
• C) flat
• D) progressive

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Definitions:

Fair Dealing

A principle requiring parties, especially in financial transactions or fiduciary relationships, to act in an honest and open manner without taking unfair advantage.

Substantially Impair

To significantly diminish or weaken the value, function, or condition of something.

UCC Specifications

Standards and rules developed under the Uniform Commercial Code that govern commercial transactions within the United States.

Non-Delivery

The failure to deliver goods or services as agreed upon in a contract.