Suppose a person with an income of $20,000 pays a tax of $2,000. If the tax is progressive, then how large of a tax will a person with an income of $40,000 pay?

Question

Quizplus · Accepted Answer

In a progressive tax system, the tax rate increases as income increases. Therefore, a person with an income of $40,000 would pay more than double the tax of a person with an income of $20,000, resulting in a tax greater than $4,000.

Suppose a Person with an Income of $20,000 Pays a Tax