A family that earns $20,000 a year pays $1,000 a year in payroll taxes. A family that earns $40,000 a year pays $2,000 a year in payroll taxes. The payroll tax is

Name: A family that earns $20,000 a year pays $1,000 a year in payroll taxes. A family that earns $40,000 a year pays $2,000 a year in payroll taxes. The payroll tax is
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The payroll tax is proportional because the tax rate remains constant regardless of income level, with both families paying 5% of their income in taxes.

A Family That Earns $20,000 a Year Pays $1,000 a Year