The overall incidence of taxes in America is proportional, because
A) federal, state, and local taxes all tend to be proportional.
B) generally regressive federal taxes are counterbalanced by more progressive state and local taxes.
C) generally regressive state and local taxes are counterbalanced by progressive federal taxes.
D) relative deprivation serves as a counterbalance at each level.
E) federal taxes are proportional.
Answer: C
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