If Lex's Income Increases from $30,000 to $40,000 and His

Multiple Choice

If Lex's income increases from $30,000 to $40,000 and his tax liability increases from $6,000 to $10,000, which of the following is true?

A) His marginal tax rate is 20 percent in this range.
B) His average tax rate is 40 percent at his new income level of $40,000.
C) He faces a regressive tax in this income range.
D) He faces a progressive tax in this income range.