The rate of tax increase as the amount of the tax base increases is called
(A) Proportional tax
(B) Progressive tax
(C) Regressive tax
(D) Degressive tax
Correct Answer : Progressive tax
Question Asked : SSC CGL Tier-I (CBE) Exam 2016
Explanation : A progressive tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate.
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