WAEC - Economics (2023 - No. 19)
Use the graph above to answer the question
The curve labelled W shows the
regressive tax
proportional tax
specific tax
progressive tax
Explanation
A progressive tax is a tax system in which the tax rate increases as the amount of taxable income increases. This means that people with higher incomes pay a higher percentage of their income in taxes than people with lower incomes.
The curve labeled W shows that the tax rate increases as the amount of taxable income increases. This is the defining characteristic of a progressive tax system.
The curve labeled W shows that the tax rate increases as the amount of taxable income increases. This is the defining characteristic of a progressive tax system.
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