Asked by Daniel Gurov on Jun 17, 2024

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The following table shows tax payments made for various incomes.According to the information in the table below,the tax system is:
Table 3.1
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 Taxable income $1,000$2,000$4,000$8,000 Tax payments $10$30$90$270\begin{array} { | l | r | r | r | r | } \hline \text { Taxable income } & \$ 1,000 & \$ 2,000 & \$ 4,000 & \$ 8,000 \\\hline \text { Tax payments } & \$ 10 & \$ 30 & \$ 90 & \$ 270 \\\hline\end{array} Taxable income  Tax payments $1,000$10$2,000$30$4,000$90$8,000$270

A) progressive throughout all levels of income.
B) progressive between $1,000 and $2,000 of income but regressive above $2,000.
C) regressive throughout all levels of income.
D) regressive between $1,000 and $2,000 of income but progressive above $2,000.
E) proportional throughout all levels of income.

Progressive Tax

A tax system in which tax rates increase as the taxable amount increases, placing a higher tax burden on individuals with higher incomes.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Tax Payments

The compulsory contributions to state revenue levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

  • Understand the reasoning, fundamentals, and outcomes of diverse tax frameworks.
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Sofia ObregonJun 22, 2024
Final Answer :
A
Explanation :
The tax payments increase at an increasing rate as income increases, indicating a progressive tax system throughout all levels of income.