A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed is:
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A. B. C. D.B
The correct answer is B. Progressive tax structure.
A progressive tax structure is a tax system where the tax rate increases as the taxable income of the taxpayer increases. This means that the more a taxpayer earns, the higher the percentage of their income they pay in taxes.
For example, in a progressive tax system, the first $10,000 of taxable income might be taxed at a rate of 10%, the next $20,000 at a rate of 15%, and any income above $30,000 at a rate of 25%.
The opposite of a progressive tax structure is a regressive tax structure, where the tax rate decreases as the taxable income of the taxpayer increases. In a regressive tax system, the lower the income, the higher the percentage of the income they pay in taxes.
A tax bracket is a range of income levels that are taxed at a specific rate under a progressive tax structure. For example, in the United States, there are currently seven tax brackets ranging from 10% to 37% for individuals, depending on their taxable income.
The marginal tax rate is the tax rate that applies to the last dollar of taxable income earned by a taxpayer. In other words, it's the tax rate that applies to the highest tax bracket in which the taxpayer's income falls.
An immovable tax structure is not a commonly used term in tax systems, and there is no clear definition for it. It is not a valid answer to the question.