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. Jonathan who earns $50,000 a year would have to pay

Name: 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. Jonathan who earns $50,000 a year would have to pay
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Jonathan's taxable income is $50,000 - $25,000 = $25,000. The tax he pays is 12% of $25,000, which is $3,000.

Suppose a Flat Tax Plan Allows Individuals to Deduct a Standard