A single tax rate applied to an entire base is known as a(n) tax. When the base is divided into a series of monetary amounts, or brackets, and each bracket is taxed at a different rate, this system is known as a Graduated Income Tax .
Step-by-step explanation:
- In a graduated income tax ,the tax rates varies as the income changes.The opposite of gradual income tax is Flat tax (where all the incomes are taxed under the same rate).
- In United State the federal Government uses Progressive Graduated Income tax,in which the tax rate increase as the taxable amount increases