If Bob earns $20,000 per year and Sue earns $100,000 a year,and there is a flat tax of 10 percent imposed,then Bob would pay __________,Sue would pay ___________,and this is a __________ tax.

Question

Quizplus · Accepted Answer

A flat tax means that everyone, regardless of their income level, pays the same percentage of their income in taxes. In this case, the flat tax rate is 10%. Therefore, Bob would pay 10% of his $20,000 income which is $2,000 and Sue would pay 10% of her $100,000 income which is $10,000. This is a proportional tax because the percentage of income paid in taxes is the same for all taxpayers.

If Bob Earns $20,000 Per Year and Sue Earns $100,000