What is a progressive tax?
Question 6a of 10 - Taxes
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: What is a progressive tax?
- A tax that raises prices on imports
- A tax that pays for specific social programs
- A tax that charges more for higher incomes
- A tax that reduces demand for harmful activities
The correct answer is: A tax that charges more for higher incomes. Progressive taxation is based on the ability-to-pay principle, so more taxes are charged to those with greater incomes.
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