Which of the Following Is False

Multiple Choice

Which of the following is false?

A) A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base
B) The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system
C) An example of a proportional tax is the tax on gasoline
D) An example of a progressive tax is the federal tax on gifts
E) None of these