Which of the following is true of progressive tax?

A) People who make more money pay less total taxes.
B) The marginal tax rate increases as income increases.
C) The percentage of income paid out decreases as income increases.
D) People who are poor receive the proceeds of the tax.
E) The percentage of income paid out increases as income decreases.

Progressive Tax

A tax system in which the tax rate increases as the taxable base amount increases, meaning higher earners pay a higher percentage of their income in taxes.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taken as tax.

Income Increases

A rise in the amount of money received, especially on a regular basis, by an individual or group.