Answer :
The table provides information about the yearly income and tax rate for four different companies. Let's analyze the relationship between their incomes and the corresponding tax rates.
[tex]\[ \begin{tabular}{|l|c|c|} \cline { 2 - 3 } \multicolumn{1}{c|}{} & Total income & Tax rate \\ \hline Company A & \$50 \text{ million} & 10\% \\ \hline Company B & \$100 \text{ million} & 12\% \\ \hline Company C & \$150 \text{ million} & 15\% \\ \hline Company D & \$200 \text{ million} & 20\% \\ \hline \end{tabular} \][/tex]
Observing the data:
- Company A has a total income of \$50 million and a tax rate of 10%.
- Company B has a total income of \$100 million and a tax rate of 12%.
- Company C has a total income of \$150 million and a tax rate of 15%.
- Company D has a total income of \$200 million and a tax rate of 20%.
We can see that as the total income increases, the tax rate also increases. Specifically:
- From \[tex]$50 million to \$[/tex]100 million, the tax rate increases from 10% to 12%.
- From \[tex]$100 million to \$[/tex]150 million, the tax rate increases from 12% to 15%.
- From \[tex]$150 million to \$[/tex]200 million, the tax rate increases from 15% to 20%.
This pattern indicates that the tax rate increases with increased income, which is characteristic of a progressive tax system.
Therefore, the type of taxation best represented by this table is:
B. Progressive
[tex]\[ \begin{tabular}{|l|c|c|} \cline { 2 - 3 } \multicolumn{1}{c|}{} & Total income & Tax rate \\ \hline Company A & \$50 \text{ million} & 10\% \\ \hline Company B & \$100 \text{ million} & 12\% \\ \hline Company C & \$150 \text{ million} & 15\% \\ \hline Company D & \$200 \text{ million} & 20\% \\ \hline \end{tabular} \][/tex]
Observing the data:
- Company A has a total income of \$50 million and a tax rate of 10%.
- Company B has a total income of \$100 million and a tax rate of 12%.
- Company C has a total income of \$150 million and a tax rate of 15%.
- Company D has a total income of \$200 million and a tax rate of 20%.
We can see that as the total income increases, the tax rate also increases. Specifically:
- From \[tex]$50 million to \$[/tex]100 million, the tax rate increases from 10% to 12%.
- From \[tex]$100 million to \$[/tex]150 million, the tax rate increases from 12% to 15%.
- From \[tex]$150 million to \$[/tex]200 million, the tax rate increases from 15% to 20%.
This pattern indicates that the tax rate increases with increased income, which is characteristic of a progressive tax system.
Therefore, the type of taxation best represented by this table is:
B. Progressive
