Question: Suppose T = 1 0 0 + 0 . 2 5 TI . where T is the total tax due, TI is the taxable income,

Suppose T =100+0.25TI. where T is the total tax due, TI is the taxable income, and marginal tax rate isMTR =0.25. Based on the average tax rate, which of the following is true? a. It is a progressive tax. b. It is a proportional tax. c. It is a regressive tax. It is a flat tax. both b and d.

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