Suppose That the Government Collected Taxes in the Following Fashion

Multiple Choice

Suppose that the government collected taxes in the following fashion: people who earn less than $50,000 pay 25 percent in taxes, people who earn between $50,000 and $100,000 pay 35 percent in taxes, people who earn between $100,000 and $200,000 pay 30 percent in taxes, and people who earn more than $200,000 pay 28 percent in taxes. Which of the following statements is correct?

A) The tax system is proportional for income levels less than $50,000 and regressive for income levels above $50,000.
B) The tax system is regressive for income levels less than $100,000 and progressive for income levels above $100,000.
C) The tax system is progressive for income levels less than $100,000 and regressive for income levels above $100,000.
D) The tax system is progressive for income levels less than $50,000 and proportional for income levels above $100,000.