The Mythical Country of Woodland Imposes Two Taxes

The mythical country of Woodland imposes two taxes:
Worker tax: Employers withhold ten percent of all wages and salaries.If taxable income as reported on the employee's income tax return is greater than $40,000,an additional 5% tax is levied on all income.
Business tax: All businesses pay a tax on invested capital based on a valuation formula.The tax computed for three different amounts of invested capital is provided below:
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According to the definitions in the text:

I.The worker tax is a regressive tax rate structure.
II.The business tax is a progressive tax rate structure.
III.The worker tax is a progressive tax rate structure.
IV.The business tax is a regressive tax rate structure.
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A) Statements I and III are correct.
B) Statements II and III are correct.
C) Only statements III is correct.
D) Statements I and IV are correct.
E) Statements III and IV are correct.