A tax function is considered progressive if the tax rate increases as the taxable amount increases. (a) If A=0, the tax function T(z) = τz is progressive. This is because the tax rate (τ) is applied to the entire amount z, meaning that as z increases, the total tax also increases. (b) If A0, the tax function T(z) = A + τz is not necessarily progressive. The presence of A, a fixed amount, means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases. (c) If A0, the presence of A means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases. (d) The tax function T(z) = A + τz is proportional for all values of A if the tax rate τ remains constant regardless of the value of z. This means that the tax is a fixed percentage of z, regardless of how much z is. This is the definition of a proportional tax.

Question

A tax function is considered progressive if the tax rate increases as the taxable amount increases.

(a) If A=0, the tax function T(z) = τz is progressive. This is because the tax rate (τ) is applied to the entire amount z, meaning that as z increases, the total tax also increases.

(b) If A>0, the tax function T(z) = A + τz is not necessarily progressive. The presence of A, a fixed amount, means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases.

(c) If A<0, the tax function T(z) = A + τz is not necessarily progressive. Similar to when A>0, the presence of A means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases.

(d) The tax function T(z) = A + τz is proportional for all values of A if the tax rate τ remains constant regardless of the value of z. This means that the tax is a fixed percentage of z, regardless of how much z is. This is the definition of a proportional tax.

Knowee AI · Accepted Answer

A tax function is considered progressive if the tax rate increases as the taxable amount increases.

(a) If A=0, the tax function T(z) = τz is progressive. This is because the tax rate (τ) is applied to the entire amount z, meaning that as z increases, the total tax also increases.

(b) If A>0, the tax function T(z) = A + τz is not necessarily progressive. The presence of A, a fixed amount, means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases.

(c) If A<0, the tax function T(z) = A + τz is not necessarily progressive. Similar to when A>0, the presence of A means that the tax is not solely dependent on z. Therefore, the tax rate does not necessarily increase as z increases.

(d) The tax function T(z) = A + τz is proportional for all values of A if the tax rate τ remains constant regardless of the value of z. This means that the tax is a fixed percentage of z, regardless of how much z is. This is the definition of a proportional tax.

The tax function T (z) = A + τ z (a) is progressive if A=0 (b) is progressive if A>0 (c) is progressive if A<0* (d) is proportional for all values of A

Question

The tax function $T(z) = A + \tau z$

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