3. Consider the following income tax system. A person pays no tax on the first $10,000 of income and then pays a tax rate of 20% on all additional income.

A. Calculate the amount of tax paid by a person with an income of $20,000. (3 points)

B. Calculate the amount of tax paid by a person with an income of $100,000. (3 points)

C. Is this a progressive, regressive, or proportional tax? Explain. (4 points)