Exhibit 3-2
$ \begin{array}{lrrr}\text { Taxable income } & \$ 5,000 & \$ 10,000 & \$ 20,000 \ \text { Tax payments } & \$ 500 & \$ 600 & \$ 1,600\end{array} $
-Refer to the exhibit.What is the taxation system?

Question

Quizplus · Accepted Answer

The tax rate decreases as income increases, indicating a regressive tax system.

Exhibit 3-2 Taxable income $5,000$10,000$20,000 Tax payments $500$600$1,600 \begin{array}{lrrr}\text { Taxable income } & \$ 5,000 & \$ 10,000 & \$ 20,000 \\ \text { Tax payments } & \$ 500 & \$ 600 & \$ 1,600\end{array} Taxable income Tax payments ​$5,000$500​$10,000$600​$20,000$1,600​

Exhibit 3-2 $\begin{array}{lrrr}\text { Taxable income } & \$ 5,000 & \$ 10,000 & \$ 20,000 \\ \text { Tax payments } & \$ 500 & \$ 600 & \$ 1,600\end{array}$