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10 June, 00:23

Suppose you live in a country with a proportional tax system. You make $20,000 a year and pay $5000 in taxes. Your friend, Naomi, makes twice as much money as you. What amount can she expect to pay in taxes this year? $2500 $5000 $10,000 $20,000

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  1. 10 June, 01:27
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    10,000 in taxes, because it's twice as much pay so twice as much in taxes
  2. 10 June, 03:42
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    Naomi can expect to pay $10,000 in taxes this year.

    Explanation:

    Proportional tax systems charge taxpayers by virtue of what they earn annually. It is an equitable system, since it charges the same percentage to all; but not equal, since each person pays a different amount according to their income range.

    As in the example I make $20,000 a year and I pay $5,000 in taxes, the tax burden applied is 25%. Therefore, if my friend Naomi earns twice as much as me, that is, $ 40,000 a year, applying the same tax burden she should pay $10,000 in taxes.
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