Juan pays $14,000 in taxes while earning $100,000.Hector earns $120,000.If the tax system is progressive,Hector will pay taxes of

Question

Quizplus · Accepted Answer

Since the tax system is progressive, Hector, who earns more than Juan, will have a higher tax rate. We can assume that Hector's tax rate is at least equal to Juan's tax rate, so Hector's taxes will be at least $14,000. However, since Hector earns more than Juan, his tax rate will likely be higher, meaning he will have to pay more in taxes. We can estimate Hector's taxes as follows:

- If Hector's tax rate is the same as Juan's (14%), he would pay $16,800 in taxes (14% of $120,000).
- If Hector's tax rate is higher than Juan's (for example, 18%), he would pay $21,600 in taxes (18% of $120,000).

Therefore, we can conclude that Hector's taxes will be more than $16,800, making choice B the correct answer.

Juan Pays $14,000 in Taxes While Earning $100,000