Suppose that the flat tax is 20 percent. A worker who earns $1000 before taxes and puts all of the income net of taxes into a bond that earns 10 percent per annum will earn an additional _______ in one year.

Name: Suppose that the flat tax is 20 percent. A worker who earns $1000 before taxes and puts all of the income net of taxes into a bond that earns 10 percent per annum will earn an additional _______ in one year.
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Question

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After a 20% tax on $1000, the worker has $800. A 10% return on $800 is $80.

Suppose That the Flat Tax Is 20 Percent