O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2011 · Q261 Mark
When is a direct tax described as progressive?
Awhen the government changes the basic rate of tax in each budget
Bwhen the government taxes companies rather than individuals
Cwhen the tax takes a larger proportion of earnings as earnings increase
Dwhen the tax takes a smaller proportion of earnings as earnings increase
✓ Correct answer
C: when the tax takes a larger proportion of earnings as earnings increase
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