Consider two people, Sandy Smith, who earns $25,000, and Gary Carver, who earns $50,000. If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then:
A) Gary and Sandy both pay taxes of the same percentage of total income.
B) Gary and Sandy pay the same amount of taxes.
C) Gary pays twice the tax amount Sandy pays.
D) Gary pays three times the tax amount Sandy pays.
E) Sandy does not pay taxes.
Correct Answer:
Verified
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