Question: Consider the following table, which shows the total amount of taxes paid at different total income levels in a society. For each income level, calculate the effective tax rate. Is this tax system progressive or regressive? Explain.
Total income Total taxes paid
$200,000 $50,000
$100,000 $22,000
$80,000 $16,000
$50,000 $8,000
$40,000 $4,000
$20,000 $1,000