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  • If the tax rate increases with the higher level of income...
Multiple choice

If the tax rate increases with the higher level of income, it shall be called:

  1. Proportional Tax

  2. Progressive Tax

  3. Lump sum Tax

  4. Regressive Tax

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A progressive tax is a tax in which the tax rate increases as the taxable amount (income) increases.

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