Indicate which of the following statements concerning the following tax rate structures is/are correct.
?
When Income
Total Tax
Equals
Equals
Structure #1
10,000
600
100,000
5,000
Structure #2
15,000
900
75,000
4,500
Structure #3
13,000
975
86,000
6,600
?
I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive.
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive.
?
A. Only statement I is correct.
B. Only statement III is correct.
C. Statements I and II are correct.
D. Statements II and IV are correct.
E. Statements I, II, and IV are correct.
Answer: D
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