Suppose Bob earns $20,000 per year and pays $2,000 in taxes, while Cindy earns $40,000 per year and pays $4,000 in taxes. This is an example of a _______ tax.

Name: Suppose Bob earns $20,000 per year and pays $2,000 in taxes, while Cindy earns $40,000 per year and pays $4,000 in taxes. This is an example of a _______ tax.
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Question

Quizplus · Accepted Answer

Both Bob and Cindy are paying 10% of their income in taxes, which is characteristic of a proportional tax system where the tax rate is the same regardless of income level.

Suppose Bob Earns $20,000 Per Year and Pays $2,000 in Taxes