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Which describes a type of tax that people pay on money they earn?

A. Income tax
B. Purchase tax
C. Progressive tax


Sagot :

Final answer:

A progressive tax system increases tax rates as income rises, aiming to reduce the burden on lower-income individuals.


Explanation:

Progressive tax is a tax where the tax rate increases as the taxable base amount rises. It aims to reduce the tax burden on lower-income individuals by shifting it to higher-income individuals. The U.S. federal tax system is an example of a progressive tax system, where higher earners are taxed at higher rates.


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