A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2019 · Q171 Mark
What describes a regressive tax?
Alow income earners pay a higher proportion of their income in tax than high income earners
Bmarginal tax rates exceed average tax rates
Cthe cost of collecting the tax exceeds the revenue raised
Dthe marginal rate of tax is higher for high income earners than for low income earners
✓ Correct answer
A: low income earners pay a higher proportion of their income in tax than high income earners
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