Answer :
To determine which type of taxation system is best represented by the table, we need to analyze the tax rates applied to the different companies based on their yearly income.
First, let's summarize the given information:
- Company A:
- Income: [tex]$50 million - Tax rate: 10% - Company B: - Income: $[/tex]100 million
- Tax rate: 10%
- Company C:
- Income: [tex]$150 million - Tax rate: 0% - Company D: - Income: $[/tex]200 million
- Tax rate: (not provided, let's assume it's the same as the others with no special exemption mentioned)
Now let's go through each possible option:
### A. Proportional Tax System
In a proportional tax system, all taxpayers are taxed at the same rate regardless of their income levels.
- Companies A and B are both taxed at a rate of 10%.
- Company C, however, is taxed at 0%, which is a special case implying no tax rate rather than a general proportional tax.
Since most companies are taxed at the same rate (but with an exception for Company C), the majority rule can suggest this system represents a proportional tax system.
### B. Regressive Tax System
In a regressive tax system, the tax rate decreases as the income increases.
Since there is no indication that higher incomes are taxed at a lower rate (apart from the special case of Company C), this system is not regressive.
### C. Progressive Tax System
In a progressive tax system, the tax rate increases as the income increases.
- The data does not present increasing tax rates with increasing income. Most companies are taxed at 10%, and Company C pays no tax, thus not representing increasing tax rates.
### D. Indirect Tax
Indirect taxes are not based directly on income but on consumption or transactions (e.g., sales tax, VAT).
The presented data directly associates tax rates to company incomes rather than consumption, thus it does not indicate an indirect tax system.
Conclusion: The table best represents a Proportional tax system despite the special case for Company C, because the majority of companies are taxed at the same rate.
Thus, the correct answer is:
A. Proportional
First, let's summarize the given information:
- Company A:
- Income: [tex]$50 million - Tax rate: 10% - Company B: - Income: $[/tex]100 million
- Tax rate: 10%
- Company C:
- Income: [tex]$150 million - Tax rate: 0% - Company D: - Income: $[/tex]200 million
- Tax rate: (not provided, let's assume it's the same as the others with no special exemption mentioned)
Now let's go through each possible option:
### A. Proportional Tax System
In a proportional tax system, all taxpayers are taxed at the same rate regardless of their income levels.
- Companies A and B are both taxed at a rate of 10%.
- Company C, however, is taxed at 0%, which is a special case implying no tax rate rather than a general proportional tax.
Since most companies are taxed at the same rate (but with an exception for Company C), the majority rule can suggest this system represents a proportional tax system.
### B. Regressive Tax System
In a regressive tax system, the tax rate decreases as the income increases.
Since there is no indication that higher incomes are taxed at a lower rate (apart from the special case of Company C), this system is not regressive.
### C. Progressive Tax System
In a progressive tax system, the tax rate increases as the income increases.
- The data does not present increasing tax rates with increasing income. Most companies are taxed at 10%, and Company C pays no tax, thus not representing increasing tax rates.
### D. Indirect Tax
Indirect taxes are not based directly on income but on consumption or transactions (e.g., sales tax, VAT).
The presented data directly associates tax rates to company incomes rather than consumption, thus it does not indicate an indirect tax system.
Conclusion: The table best represents a Proportional tax system despite the special case for Company C, because the majority of companies are taxed at the same rate.
Thus, the correct answer is:
A. Proportional
