Question:

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

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Progressive taxes impose a higher rate on higher income brackets.
Updated On: Aug 12, 2025
  • Progressive Tax
  • Proportional Tax
  • Lump sum Tax
  • Regressive Tax
    % Correct answer \textbf{Correct Answer:} (a) Progressive Tax
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The Correct Option is A

Solution and Explanation

In a progressive tax system, the tax rate increases as income increases.
This system aims to reduce income inequality.
The other options either keep the rate fixed or inversely related to income.
Hence, the correct choice is (a).
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