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.

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Definitions:

Bonds Payable

A financial accounting term used to describe the amounts due to be paid by an issuer to the bondholders at the bond's maturity date.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's profitability.

Bonds Payable

Bonds payable are long-term debts issued by corporations or governments, where the issuer promises to pay the bondholder a specific sum of money at future dates.