Suppose a flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages and the flat tax rate is 12 percent. An individual earning $20,000 a year would pay:

Question

Quizplus · Accepted Answer

Since the individual earns $20,000, which is less than the standard allowance of $25,000, their taxable income would be $0 after the deduction. Therefore, they would pay $0 in taxes.

Suppose a Flat Tax Plan Allows Individuals to Deduct a Standard