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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Definitions:

Kidneys

Organs in the urinary system responsible for filtering waste from the blood and producing urine.

Trophoblast

The outer layer of cells surrounding a blastocyst in early pregnancy, which develops into the placenta and provides nutrients to the embryo.

Amniotic Sac

A fluid-filled sac that surrounds and protects the embryo and fetus in the uterus during pregnancy.

Zygote

The first cell created through the fusion of an egg cell and a sperm cell, signifying the start of a new organism's growth.