A tax that increases at a higher percentage as income increase is called?

Assessment: JAMB UTME - Economics - 2001 Subject: Economics

Question 1 Report

A tax that increases at a higher percentage as income increase is called?

Answer Details
A tax that increases at a higher percentage as income increases is called a "progressive tax". In this type of tax, as income increases, the percentage of income paid as tax also increases. This means that those with higher incomes pay a larger share of their income in taxes compared to those with lower incomes. The idea behind a progressive tax is to distribute the tax burden more fairly, so that those who can afford to pay more, do so.
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