Which of the Following Is True of Progressive Tax

question 14

Multiple Choice

Which of the following is true of progressive tax?

• A)People who make more money pay less total taxes.
• B)The marginal tax rate increases as income increases.
• C)The percentage of income paid out decreases as income increases.
• D)People who are poor receive the proceeds of the tax.
• E)The percentage of income paid out increases as income decreases.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, wherein the debtor's assets are measured and used to repay a portion of the outstanding debts to creditors.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Actual Authority

The express power granted by a principal to an agent to perform tasks or make decisions on their behalf.

Principal

The initial amount of a loan or investment, excluding any interest or dividends.