Question

Which of the following best defines a graduated income tax?
an income tax that increases with a person’s level of education
an income tax that replaces an earlier tax, such as a tariff
a tax in which higher earners pay more than lower earners
a tax that is scheduled to increase with time

Answer 1

A graduated income tax is: "a tax in which higher earners pay more than lower earners." It’s the same as a progressive tax with rates that increase as income rises.