Spike pays $14,000 in taxes and earns $100,000. Ace earns $120,000. If the tax system is progressive, Ace will pay ________ in taxes.

Name: Spike pays $14,000 in taxes and earns $100,000. Ace earns $120,000. If the tax system is progressive, Ace will pay ________ in taxes.
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Question

Quizplus · Accepted Answer

Spike's tax is 14 percent of his income ($14,000/$100,000 = 0.14). If the tax system is progressive, then Ace will have to pay more than 14 percent of his income (that is, more than $16,800 = 0.14 × $120,000).

Spike Pays $14,000 in Taxes and Earns $100,000