Sure, let's analyze the tax system presented in the table step by step.
Here is the table again for reference:
[tex]\[
\begin{array}{|l|l|l|}
\hline \text{Amount} & \text{Tax Rate} & \text{Total Tax} \\
\hline \$ 20,000 & 1\% & \$ 200 \\
\hline \$ 50,000 & 3\% & \$ 1,500 \\
\hline \$ 100,000 & 20\% & \$ 20,000 \\
\hline \$ 500,000 & 50\% & \$ 250,000 \\
\hline
\end{array}
\][/tex]
The question is: which form of taxation is being represented here?
### Step-by-Step Analysis:
1. Tax Rate Analysis:
- For [tex]$\$[/tex]20,000[tex]$, the tax rate is $[/tex]1\%[tex]$.
- For $[/tex]\[tex]$50,000$[/tex], the tax rate is [tex]$3\%$[/tex].
- For [tex]$\$[/tex]100,000[tex]$, the tax rate is $[/tex]20\%[tex]$.
- For $[/tex]\[tex]$500,000$[/tex], the tax rate is [tex]$50\%$[/tex].
We see that as the amount increases, the tax rate also increases.
2. Types of Taxation:
- Regressive Taxation (A): In a regressive tax system, the tax rate decreases as the taxable amount increases. This is not what we observe here.
- Progressive Taxation (B): In a progressive tax system, the tax rate increases as the taxable amount increases. This is exactly what we observe here.
- Proportional Taxation (C): In a proportional tax system, the tax rate remains constant regardless of the taxable amount. This is not what we see.
- Appreciating (D): This is not a standard term used to describe tax systems.
Based on this analysis, the form of taxation represented here is "Progressive Taxation" (B).
### Application to a Specific Example:
Now, we need to identify an example of progressive taxation:
- Sales Tax (A): Sales tax is usually a flat percentage of the sales amount, making it proportional rather than progressive.
- Income Tax (B): Income tax often falls under progressive taxation, especially when higher incomes are taxed at higher rates.
- Excise Tax (C): Excise tax is typically a fixed rate per unit and does not vary with income, making it different from progressive taxation.
From these options, the correct example of the type of taxation shown is Income Tax (B).
### Conclusion:
- The form of taxation is Progressive (B).
- An example of this form of taxation is Income Tax (B).
So the final answers to the questions are:
1. The form of taxation is: Progressive (B)
2. Example of the correct type of taxation is: Income Tax (B).
