Indicate which of the following statements concerning the following tax rate structures is/are correct.
?
?
$$\begin{array} { c c c }
& \text { When Income } & \text { Total Tax } \
&\text { Equals } &\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} { c c c } 
& \text { When Income } & \text { Total Tax } \
&\text { Equals } &\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

Statement I is incorrect as Tax Structure #1 is not proportional since the tax rate changes as income increases. 
Statement II is correct as Tax Structure #1 is regressive since the tax rate decreases as income increases. 
Statement III is incorrect as there is no mention of the tax rate structure #2 being progressive or not. 
Statement IV is correct as Tax Structure #3 is progressive since the tax rate increases as income increases. Therefore, only statements II and IV are correct, resulting in option D as the correct choice.

Indicate Which of the Following Statements Concerning the Following Tax