Question

A(n) ______ tax structure applies the same tax rate to all levels of income, while a(n) ______ tax structure applies higher tax rates as the tax base increases, and a(n) ______ tax structure applies lower tax rates as the tax base increases."

Options:
A) Progressive, Regressive, Proportional
B) Proportional, Progressive, Regressive
C) Regressive, Proportional, Progressive
D) Progressive, Proportional, Regressive

Answer 1

The correct tax structures in sequence are progressive, regressive, and proportional, applying different tax rates based on income levels.

Step-by-step explanation:

A proportional tax structure applies the same tax rate to all levels of income. A progressive tax structure applies higher tax rates as the tax base increases. Lastly, a regressive tax structure applies lower tax rates as the tax base increases. Therefore, the correct sequence to fill the blanks in the question would be: A) Progressive, Regressive, Proportional.

A proportional tax structure applies the same tax rate to all levels of income, while a progressive tax structure applies higher tax rates as the tax base increases, and a regressive tax structure applies lower tax rates as the tax base increases.