Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:

Question

Quizplus · Accepted Answer

If the tax system is proportional, then both Curly and Moe will pay the same proportion of their income in taxes. Curly's tax is 8 percent of his income ($12,000/ $150,000 = 0.08). If Moe's tax is 8 percent of his income, then his income must be $87,500 ($7,000/0.08 = $87,500).

Curly Pays $12,000 in Taxes and Earns $150,000