Suppose taxes are levied in the following way. No individual pays any taxes on the first $10,000 of their income. And for every dollar earned above this amount, all individuals pay 20 percent in taxes. This income- tax system is

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This income-tax system is progressive because, as income increases, the percentage of income paid in taxes also increases. Those who earn more will pay a higher percentage of their income in taxes compared to those who earn less. It is not proportional because the tax rate increases as income increases, and it is not regressive because the tax rate does not decrease as income increases. This is not an accurate description of the Canadian system, as the actual system has different tax brackets with varying rates.

Suppose Taxes Are Levied in the Following Way