Ask Question
BusinessBusiness
18 April, 06:12

If Olaf earns $100,000 and pays $20,000 in taxes and George earns $200,000 and pays $48,000 in taxes, what type of tax system does this situation represent?

+2
Answers (1)
  1. 18 April, 10:00
    0
    This situation represents progressive type of tax system.

    Explanation:

    A progressive tax is laid on the people based on their ability to pay. A lower tax rate is charged for the individual with low income compared to the person with higher income. The tax rate is fixed based on the income of the person. The high income earners are charged tax with higher percentage.

    In the above scenario, the income of Olaf is $100,000. So he pays $20,000 as tax. George earns $200,000, so he pays $48,000 as tax. George pays tax higher than Olaf, as he earns higher than Olaf.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If Olaf earns $100,000 and pays $20,000 in taxes and George earns $200,000 and pays $48,000 in taxes, what type of tax system does this ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The chief executive of Norell, an agency that supplies businesses with temporary workers, realizes that the health care industry requires temporary workers as much, if not more, as goods-oriented businesses.
Answers (1)
Angelina is single and has modified agi of $275,000. she adopted a boy from san antonio, texas, and incurred a total of $16,000 in qualified adoption expenses. what is the amount of adoption credit she can take
Answers (1)
Whenever bhavin left his homework at school, he lost his computer privileges for two days. bhavin forgets his homework much less often now. losing computer privileges is an example of:?
Answers (1)
Which of the following is the first step in self-leadership? Establishing client relationships Practicing gainsharing Personal goal setting Constructive thought patterns Self-reinforcement
Answers (1)
Which of the following is not one of the factors required to charge for online content? A) multiple delivery methods B) focused market C) specialized content D) high perceived net value
Answers (1)
New Questions in Business
Jenna owns a film production company that produces television commercials and short documentaries. she has only a few permanent employees but hires temporary crew members such as lighting specialists, camera operators, and set designers as needed to
Answers (1)
On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: • The supplies account balance on December 31 is $5,865, The supplies on hand on December 31 are $1,330.
Answers (1)
An activity's normal time and cost are 8 and $100, respectively. its estimated crash time and cost are 6 and $160, respectively. what is this activity's crash cost per time unit?
Answers (1)
Assume a domestic company in the US, let's say Colgate-Palmolive, is deciding to export to a country where to date Colgate products are not present. Which method of entry will demonstrate lower fixed costs associated?
Answers (2)
Almost without exception, when leftist leaders have been voted into power in the late 20th and early 21st centuries in Latin America, they have upheld their allegiance to the ideals of social justice, human rights, and the elimination of the
Answers (1)
Home » Business » If Olaf earns $100,000 and pays $20,000 in taxes and George earns $200,000 and pays $48,000 in taxes, what type of tax system does this situation represent?
Sign Up Forgot Password?