A progressive tax structure is one in which "the larger the amount of taxable income, the higher the rate at which it is taxed".
Answer: Option B
Explanation:
Progressive taxation has a significant effect on reducing disparity in income.This is particularly true as taxation is used to finance progressive government programs such as pensions and social security networks. A progressive tax is a tax, which imposes a reduced rate of tax on small-income earners relative to those who have a higher earnings, rendering it based on ability of the taxpayer to pay. This displays that it takes a higher percentage of high-income earners than small-income people.
