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Question
rose earns $100,000 a year, and jack earns $50,000 a year. they each buy the same model of television and pay $200 in sales tax. mias income tax rate increased when she got a promotion and a raise. mr. brown and mr. joseph earn different annual incomes. however, they both pay income tax equivalent to 15% of their income. proportional tax regressive tax progressive tax
A proportional tax is a tax where the tax - rate is constant regardless of income level. Mr. Brown and Mr. Joseph paying 15% of their income as income tax is an example of a proportional tax. A regressive tax takes a larger percentage of income from low - income earners than from high - income earners. Rose and Jack paying the same $200 in sales tax is regressive as a higher percentage of Jack's income goes towards the sales tax. A progressive tax has a higher tax rate for higher income levels. Mia's income tax rate increasing with a raise is an example of a progressive tax.
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proportional tax: Mr. Brown and Mr. Joseph paying income tax equivalent to 15% of their income
regressive tax: Rose and Jack each buying the same television and paying $200 in sales tax
progressive tax: Mia's income tax rate increasing when she got a promotion and a raise