Which type of tax decreases as a percentage of income when a person's income rises?

Show Answers

Tax based on benefits receivedTax that increases with higher incomeTax rate that declines as income growsTax that remains constant as a percentage of income

Explanation

A benefits received tax is based on the services one uses, a progressive tax increases with income, a regressive tax takes a smaller percentage as income rises, and a proportional tax remains the same percentage regardless of income.