A flat tax plan with a standard deduction of $25,000 in income and a tax rate of 20% would require an individual earning $100,000 to pay $15,000 in income taxes.

Question

Quizplus · Accepted Answer

Under this plan, the first $25,000 is not taxed due to the standard deduction. Therefore, taxable income is $75,000 ($100,000 - $25,000). At a 20% tax rate, the tax owed would be $15,000 (20% of $75,000).

A Flat Tax Plan with a Standard Deduction of $25,000