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SSC CPO 2023 PYQ — Question 80

SSC CPO - 03 Oct 2023 - Shift 3 • General Awareness • Q80

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In which type of tax is the marginal tax rate higher than the average tax rate?

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Correct answer: D

Explanation

The correct answer is option 4 i.e. Progressive.

  • The type of tax where the marginal tax rate is higher than the average tax rate is known as a progressive tax system.
  • In a progressive tax system, as income increases, the percentage of income paid in taxes also increases. This means that higher-income individuals or households pay a larger proportion of their income in taxes compared to lower-income individuals or households.