Layla lives in Colorado and works as a teacher earning $55,000 a year. Her brother A. J. lives in Nevada and works as a teacher, too, earning the same amount. Layla pays 4.63 percent of her yearly income, or $2,546.50, to the state of Colorado in income taxes. Colorado uses these taxes to pay for public services such as school, police, and sanitation. A. J. pays 0 percent of his yearly income to the state of Nevada in income taxes. Yet his town has schools, police, and sanitation services. Why does this happen?

Question

Mathematics

Denise Maldonado

24 February, 09:22

Layla lives in Colorado and works as a teacher earning $55,000 a year. Her brother A. J. lives in Nevada and works as a teacher, too, earning the same amount. Layla pays 4.63 percent of her yearly income, or $2,546.50, to the state of Colorado in income taxes. Colorado uses these taxes to pay for public services such as school, police, and sanitation. A. J. pays 0 percent of his yearly income to the state of Nevada in income taxes. Yet his town has schools, police, and sanitation services. Why does this happen?

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Answers (1)

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Janelle Hebert · Answer 1

Because Nevada is one of the seven states where residents no pay income tax, no matter how much you make. This decision is compensated with a higher-than-average sales tax.

Step-by-step explanation:

1. Let's check the information provided to us to answer the question correctly:

Layla annual earnings = US$ 55,000

A. J. annual earnings = US$ 55,000

Income tax rate paid by Layla = 4.63%

Income tax rate paid by A. J. = 0%

2. Colorado uses these taxes to pay for public services such as school, police, and sanitation. A. J. pays 0 percent of his yearly income to the state of Nevada in income taxes. Yet his town has schools, police, and sanitation services. Why does this happen?

Because Nevada is one of the seven states where residents no pay income tax, no matter how much you make. This decision is compensated with a higher-than-average sales tax.