Mr.Thomson had a before-tax income of $20,000 and paid taxes of $2,000.Ms.Lynch had a before-tax income of $10,000 and paid taxes of $1,500.Based on this information,which of the following is correct?

A) The tax system is progressive for incomes below $10,000.
B) The tax system is proportional.
C) The tax system is regressive.
D) The tax system is based on the benefits received.
E) The tax system is progressive for incomes above $20,000.

Tax System

The structured way in which taxes are imposed in a country, including the collection of taxes from individuals and businesses.

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a higher percentage of their income in taxes.

Regressive

A term often used to describe a tax system where the tax rate decreases as the taxable amount increases, effectively placing a greater burden on those with lower incomes.