Katie Had a Before-Tax Income of $40,000 and Paid Taxes

Katie had a before-tax income of $40,000 and paid taxes of $6,000. Ramesh had a before-tax income of $35,000 and paid taxes of $5,250. Based on this information, the tax system is _____

A) regressive for all income levels below $40,000.
B) proportional.
C) progressive.
D) based on the benefits-received principle.
E) regressive for income levels between $35,000 and $40,000.