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. If Jonathan's income increases to $100,000 a year, he would have to pay
A) $9,000 to the government.
B) $6,000 to the government
C) $3,000 to the government
D) $1,200 to the government
E) $8,000 to the government.
Correct Answer:
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