Which one of the following statements is TRUE? In a proportional tax system, the marginal tax rate always exceeds the average tax rate. In a proportional tax system, the average tax rate always exceeds the marginal tax rate. The U.S. Social Security tax is regressive. The U.S. Social Security tax is proportional.
Which one of the following statements is TRUE? In a proportional tax system, the marginal tax rate always exceeds the average tax rate. In a proportional tax system, the average tax rate always exceeds the marginal tax rate. The U.S. Social Security tax is regressive. The U.S. Social Security tax is proportional.
Chapter16: The Public Sector
Section: Chapter Questions
Problem 7SQ
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Which one of the following statements is TRUE?
In a proportional tax system, the marginal tax rate always exceeds the average tax rate.
In a proportional tax system, the average tax rate always exceeds the marginal tax rate.
The U.S. Social Security tax is regressive.
The U.S. Social Security tax is proportional.
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