Progressive taxes rise with income levels

Steps:

• Define progressive tax: A tax where the rate increases as the taxpayer's income rises, making higher earners pay a larger percentage.
• Evaluate options: Check if each tax applies higher rates to higher incomes or remains flat/regressive.
• Identify income tax: It uses brackets where rates escalate (e.g., 10% to 37% in the US).
• Confirm match: Only income tax fits the progressive structure.

Why C is correct:

• Income tax is progressive by law, with escalating marginal rates on higher income brackets as defined in tax codes like the US Internal Revenue Code.

Why the others are wrong:

• A: Customs duties are flat tariffs on imports, not based on income, making them proportional or regressive.
• B: Excise duties on cigarettes are fixed per unit, burdening lower-income users more proportionally, so regressive.
• D: Sales tax is a flat percentage on purchases, taking a larger share of low incomes, thus regressive.

Final answer: C