Mr. X and Mrs. Y pay $500.00 and $1400.00 as taxes on their earning of $5000.00 and $7000.00 respectively. The system of taxation employed is

A. specific tax
B. proportional tax
C. regressive tax
D. progressive tax

Correct Answer:

Option D = progressive tax

Explanation

A progressive tax is a type of tax in which the tax rate increases as the taxable amount increases. This type of taxes imposes a greater percentage of taxation on higher income levels