Question

____ tax implies that the rate of tax increases with an increase in income.

Answer 1

Answer:

progressive tax

Although personal income tax revenues account for more total revenue than the payroll tax, nearly three-quarters of households pay more in payroll taxes than in income taxes. The income tax is a progressive tax, which means that the tax rates increase as a household's income increases.

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it is progressive tax

Answer 2

Answer:

progressive tax implies that the rate of tax increases with an increase in income