Exhibit 9-1
A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages. Assume that the flat tax rate is 12%.
-Refer to Exhibit 9-1. How much income tax would you have to pay if you were earning $20,000 a year?

Question

​Exhibit 9-1
A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages. Assume that the flat tax rate is 12%.
-Refer to Exhibit 9-1. How much income tax would you have to pay if you were earning $20,000 a year?

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, resulting in no income tax due.

​Exhibit 9-1 A Flat Tax Plan Allows Individuals to Deduct a Standard

Exhibit 9-1 A Flat Tax Plan Allows Individuals to Deduct a Standard