Progressive tax increases rate with income

Steps:

• Review table data for earnings levels and corresponding total tax paid.
• Compute effective tax rate by dividing tax paid by earnings for each level.
• Observe if tax rate rises as earnings increase, indicating higher burden on larger incomes.
• Confirm pattern matches progressive taxation definition.

Why B is correct:

• Progressive tax systems, per standard economic definitions, apply increasing marginal rates so higher earners pay a larger percentage of income, as shown in the table's escalating rates.

Why the others are wrong:

• A: Indirect taxes apply to consumption (e.g., sales tax), not directly to income earnings.
• C: Proportional systems use a flat rate across all income levels, unlike the varying rates here.
• D: Regressive systems decrease the effective rate as income rises, opposite to the table's pattern.

Final answer: B