Indicate which of the following statements concerning the following tax rate structures is/are correct.
$\begin{array}{rr}
& \text {When Income } & \text { Total Tax } \
& \underline{\text { Equals }}& \underline{\text { Equals }}\
\text { Structure \#1 } &10,000 & 600 \
&100,000 & 5,000 \
\
\text { Structure \#2 } &15,000 & 900 \
&75,000 & 4,500 \
\
\text { Structure \#3 } &13,000 & 975 \
&86,000 & 6,600
\end{array}$
I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive

Question

Indicate which of the following statements concerning the following tax rate structures is/are correct.
$\begin{array}{rr}
& \text {When Income  } & \text { Total Tax } \
& \underline{\text { Equals }}& \underline{\text { Equals }}\
 \text { Structure \#1 } &10,000 & 600 \
&100,000 & 5,000 \
\
 \text { Structure \#2 } &15,000 & 900 \
&75,000 & 4,500 \
\
 \text { Structure \#3 } &13,000 & 975 \
&86,000 & 6,600
\end{array}$
I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive

Quizplus · Accepted Answer

I. Tax structure #1 is not proportional as the rate increases as the income increases. 
II. Tax structure #1 is regressive as the effective tax rate decreases as the income increases. 
III. Tax structure #2 is progressive as the effective tax rate increases as the income increases. 
IV. Tax structure #3 is also progressive as the effective tax rate increases as the income increases. Therefore, statements II and IV are correct.

Indicate Which of the Following Statements Concerning the Following Tax