Table 32 -The Table Below Shows Tax Payments Made for Various Incomes

question 98

Multiple Choice

Table 3.2
$$\begin{array}{l}\text { Table } 3.2\\\begin{array} { | l | r | r | r | } \hline \text { Taxable income } & \$ 5,000 & \$ 10,000 & \$ 20,000 \\\hline \text { Tax payments } & \$ 500 & \$ 900 & \$ 1,600 \\\hline\end{array}\end{array}$$
-The table below shows tax payments made for various incomes. According to the information in the table below, the tax system is _____

• A) progressive at all levels of income.
• B) proportional for income levels between $10,000 and $20,000.
• C) regressive.
• D) based on the benefits-received principle.
• E) proportional for income levels between $5,000 and $10,000.

---

Definitions:

Sole Proprietorship

A type of business ownership where a single individual owns, manages, and is responsible for all aspects of the business.

Partnership

An association of two or more persons to carry on as co-owners a business for profit.

Sole Practitioner

An attorney who operates their law practice individually, rather than as part of a law firm or partnership.

Private Practitioner

A professional, often in law or healthcare, operating independently rather than as an employee of an organization.