Refer to Table 20.2. Is the tax system represented in the table progressive, regressive, or neither one? How can you tell?

What will be an ideal response?

The tax system is regressive.
When income is $20,000, the tax payment is $2,000, so the tax rate is 10%.
When income is $25,000, the tax payment is $2,250, so the tax rate is 9%.
When income is $30,000, the tax payment is $2,400, so the tax rate is 8%.
When income is $35,000, the tax payment is $2,450, so the tax rate is 7%.
As income increases, the tax rate decreases, which means the tax is regressive.