A country’s income tax system has two parts. 1 The first $20 000 of earned income is exempt from tax. 2 Any earnings above $20 000 are taxed at 20%. Which description correctly matches this tax system?
- Aa progressive tax on incomes of more than $20 000
- Ba progressive tax throughout the whole income range
- Ca proportional tax on incomes of more than $20 000
- Da regressive tax throughout the whole income range