The Following Table Shows Tax Payments Made for Various Incomes

question 30

Multiple Choice

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

• A) progressive at all levels of income.
• B) progressive for income levels between $1,000 and $2,000, but it becomes regressive above $2,000.
• C) regressive at all levels of income.
• D) regressive for income levels between $1,000 and $2,000, but it becomes progressive above $2,000.
• E) proportional at all levels of income.

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