Question

A tax that varies with a person's ability to pay is called

a. a regressive tax.
c. a sales tax.
b. an excise tax.
d. a progressive tax.

Answer 1

The right answer for the question that is being asked and shown above is that: "d. a progressive tax." A tax that varies with a person's ability to pay is called a progressive tax. This answer is true as far as the tax is concerned given the definition.