Examlex
-In the accompanying figure,Item 1 points to the ____.
Regressive Tax
A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower income.
Average Tax Rate
The ratio of total taxes paid to the total taxable income, reflecting the percentage of income that goes to taxes.
Tax-Free
Earnings or financial transactions that are exempt from taxation by the government.
Marginal Tax Rate
The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.
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