Select the correct answer. which statement about progressive taxes is true? a. the rate increases as income increases. b. the rate remains the same, even if income increases or decreases. c. the rate decreases as income increases. d. the rate increases as income decreases.

A. The rate increases as income increases.

Explanation:

Progressive tax is characterized by the percentage difference in the tax rate, which varies according to income. Thus, people with higher incomes pay a higher tax and people with lower incomes pay a lower tax. Typically, this type of tax has multiple tax layers for various types of income. This is considered a fairer form of billing, because whoever earns more pays more. On the other hand, regressive tax is characterized by the collection of a homogeneous percentage rate from all people, regardless of income. Thus, people with lower incomes pay proportionally more in relation to their income than the richer ones, so it is considered regressive.

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