Answer
Tax Rates: 20%, 15%, 13.33%.
This is a regressive tax system.
Work Step by Step
For the individual with an income of ${$10,000}$.
Their tax rate is $\frac{$2,000}{$10,000} = 20$%
For the individual with an income of ${$20,000}$.
Their tax rate is $\frac{$3,000}{$20,000} = 15$%
For the individual with an income of ${$30,000}$.
Their tax rate is $\frac{$4,000}{$30,000} = 13.33$%
Therefore, because the tax rate decreases as income increases, this is a regressive tax system.
