A Tax Is Progressive If the Tax Payment Is A

question 223

Multiple Choice

A tax is progressive if the tax payment is a:

• A)fixed percentage of income.
• B)lower percentage of income as income rises.
• C)higher percentage of income as income rises.
• D)higher percentage of income as income falls.

---

Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operations, investments, and financing activities.

Cash Outflows

Payments or expenditures made by a business, resulting in a decrease in cash holdings.

Financing Activities

Transactions that involve raising capital, repaying investors, and altering the capital structure of the organization among other financing-related decisions.

Issuing Debt

The act of a corporation or governmental entity raising money by selling bonds or notes to investors.