Based on the following data on taxable income and amount of tax, identify each type of tax system as progressive, regressive, proportional or lump sum.

I Tax system A

Ii Tax system B

Iii Tax system C

Iv Tax system D

Taxable tax A tax B tax C tax D

Income

40,000. 4,000 6,000 6,000. 5,000

80,000. 12,000 13,600 9,600. 5,000

120,000. 24,000 22,800 12,000 5,000

B An increase in the tax rate will always

increase the tax revenue and decrease the deadweight loss. Explain