4 - because the amount of tax paid varies with the ability...

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What is meant by a progressive tax? Why do you think the government believes it is a more equitable tax than, say, the regressive tax or proportional tax? Answer: A progressive rate structure is a rate structure where the tax rate increases as the tax base increases. The progressive rate structure is viewed as more equitable
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Unformatted text preview: because the amount of tax paid varies with the ability to pay. For example, the government believes that as an individual makes more income, a smaller percentage of that income is needed to buy necessary living supplies and thus more income is available to pay taxes....
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