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Which of the following statements is true regarding the relationship between an individual’s average tax rate and marginal tax rate?

Which of the following statements is true regarding the relationship between an individual’s average tax rate and marginal tax rate?
A . In a regressive personal tax system, an individual’s marginal tax rate is normally greater than his average tax rate.
B . In a regressive personal tax system, an individual’s marginal tax rate is normally equal to his average tax rate.
C . In a progressive personal tax system, an individual’s marginal tax rate is normally equal to his average tax rate.
D . In a progressive personal tax system, an individual’s marginal tax rate is normally greater than his average tax rate.

Answer: D

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