Bracketed Tax Rates as Proportional in Each Segment

Steps:

• Examine the tax on profits up to $10,000: a flat 5% rate applies to the entire amount, defining it as proportional.
• Examine the tax on profits above $10,000: a flat 10% rate applies only to the excess, defining it as proportional on that portion.
• Recognize that proportional taxation means a constant percentage rate on the base, which holds for both brackets.
• Conclude the description matches "proportional proportional" for the two distinct rates.

Why D is correct:

• Each rate is a fixed percentage on its specific profit segment, aligning with the definition of proportional taxation (constant rate per base).

Why the others are wrong:

• A: Wrong; neither rate increases within its base, so not progressive (which requires rising rates with income levels).
• B: Wrong; the second rate is proportional on the excess, not progressive.
• C: Wrong; identical to B, misclassifies the second rate as progressive.

Final answer: D