Economics · Public Finance
Which of the following statements is true regarding a 'progressive tax'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It reduces the absolute tax liability for high-income earners
- 2It takes a higher proportion of income in tax as the income rises✓
- 3It takes the same proportion of income in tax from all levels of income
- 4It takes a higher proportion of a poor person's salary than of a rich person's
Correct answer
It takes a higher proportion of income in tax as the income rises
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