**Analysis of Company Incomes and Tax Rates**Examine the four different companies in the table, which shows their yearly income and their tax rate. Which type of taxation does this table *best* represent?| Company | Total Income | Tax Rate ||-----------|--------------|----------|| Company A | $50 million | 10% || Company B | $100 million | 12% || Company C | $150 million | 15% || Company D | $200 million | 20% |This table illustrates a progressive taxation system, where the tax rate increases as the income level rises. Company A, with the lowest income, is taxed at a 10% rate, while Company D, with the highest income, faces a 20% tax rate. ### Types of Tax SystemsThis section provides a multiple-choice question regarding different tax systems. Choose the best answer that describes the type of tax system:- **A. Regressive**- **B. Progressive**- **C. Proportional**- **D. Indirect**In the absence of graphics or diagrams, the explanation remains focused on the text. Please select the option that best fits your understanding of the tax system types.

Regressive tax : The rate of taxation decreases as the income of taxpayers increases. Progressive…

Examine the four different companies in the table, which shows their yearly income and their tax rate. Which type of taxation does this table best represent? Total income Tax rate Company A $50 million 10% Company B $100 million 12% Company C $150 million 15% Company D $200 million 20%

Examine the four different companies in the table, which shows their yearly income and their tax rate. Which type of taxation does this table best represent? Total income Tax rate Company A $50 million 10% Company B $100 million 12% Company C $150 million 15% Company D $200 million 20%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Analysis of Company Incomes and Tax Rates**

Examine the four different companies in the table, which shows their yearly income and their tax rate. Which type of taxation does this table *best* represent?

| Company | Total Income | Tax Rate |
|-----------|--------------|----------|
| Company A | $50 million | 10% |
| Company B | $100 million | 12% |
| Company C | $150 million | 15% |
| Company D | $200 million | 20% |

This table illustrates a progressive taxation system, where the tax rate increases as the income level rises. Company A, with the lowest income, is taxed at a 10% rate, while Company D, with the highest income, faces a 20% tax rate.

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