A progressive tax structure is one in which:
A. tax rates are directly proportional to inflation rates.
B. the larger the amount of taxable income, the higher the rate at which it is taxed.
C. tax rates are inversely related to inflation rates.
D. everyone pays the same income tax rate.
E. no exemptions or deductions are available.

A progressive tax structure is one in which "the larger the amount of taxable income, the higher the rate at which it is taxed".

Option B

Explanation:

Progressive taxation has a significant effect on reducing disparity in income.This is particularly true as taxation is used to finance progressive government programs such as pensions and social security networks. A progressive tax is a tax, which imposes a reduced rate of tax on small-income earners relative to those who have a higher earnings, rendering it based on ability of the taxpayer to pay. This displays that it takes a higher percentage of high-income earners than small-income people.

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