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

Question

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

Quizplus · Accepted Answer

The tax system is progressive at all levels of income because as income increases, the tax payments increase at a faster rate. For example, going from a taxable income of $1,000 to $2,000 increases the tax payment by $20, while going from $4,000 to $8,000 increases the tax payment by $180. This shows a higher tax rate for higher incomes, making the system progressive.

The Following Table Shows Tax Payments Made for Various Incomes