Consider the following data that describe the relationship between income and a tax. Income Taxes $20,000 $3,400 16,000 3,000 12,000 2,400 8,000 1,600 4,000 800 The tax may be best described as

Proportional at lower income levels and regressive at higher income levels.

Consider the following data that describe the relationship between income and a tax.

Income    Taxes :

$20,000    $3,400;

$16,000     $3,000;

$12,000     $2,400;

$8,000     $1,600

$4,000      $800

The tax may be best described as

Progressive income tax system

Explanation:

This system of tax is the progressive income tax system where bigger income attracts bigger tax, also smaller income attracts smaller tax, from the illustration a person earning $20,000 pays a tax $3,400 as opposed to the person that earns $4,000 who pays a tax of $800.

The progressive income tax system is a system of tax in which the bigger earners pay more taxes to the government more than the people earning less. This system of tax is aimed at making sure that the gap between the low, middle and high-income earners are minimized.

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