If Bill earns $100,000 a year and pays $20,000 a year in income taxes, then under a progressive tax, Mike, who earns $120,000 should pay $24,000.

Question

Quizplus · Accepted Answer

A progressive tax system means the tax rate increases as the taxable amount increases, but the exact amount Mike pays depends on the specific tax brackets and rates, not just a simple proportional increase based on income.

If Bill Earns $100,000 a Year and Pays $20,000 a Year