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When a tax is regressive, as a person's income raises, the tax rate: decreases and then...

When a tax is regressive, as a person's income raises, the tax rate:

decreases and then increases

increase and then decreases

decreases

increases
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Answer #1

When a tax is regressive, as a person's income raises, the tax rate decreases.

This is because the government assesses tax as a percentage of the value of the asset that a taxpayer purchases or owns. It has no correlation with the taxpayer’s income level.

                                                                                   

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