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

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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?
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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