Which of the following describes "tax progressivity"?
A. The amount of tax money spent on technology advancements
B. The connection between income tax rate and spending
C. The relation of tax rate to income
D. The use of taxes for social programs
Answer (1)
Tax progressivity is characterized by a tax rate that increases as income rises, aiming to balance wealth distribution. It is implemented through a series of tax brackets that impose higher rates on higher income levels. This principle helps fund social programs and mitigate income inequality. ;
