Question

the total amount someone pays in taxes depends on their income. but there are different ways to determine how much money people should pay. some states have a flat tax, meaning that the tax rate is the same regardless of income. but the federal income tax is progressive, meaning that the tax rate is higher for higher incomes.
compare examples of a flat tax and a progressive tax in the table below. then answer the question.
whose tax rates would be higher under the flat tax system compared to the progressive tax system? select all that apply.
someone earning $20,000 a year
someone earning $50,000 a year
someone earning $80,000 a year
someone earning $900,000 a year

Explanation:

Step1: Determine tax rate ranges

For someone earning $20,000 a year: Flat - tax rate is 20%, Progressive - tax rate is 10%.
For someone earning $50,000 a year: Flat - tax rate is 20%, Progressive - tax rate is 15%.
For someone earning $80,000 a year: Flat - tax rate is 20%, Progressive - tax rate is 20%.
For someone earning $900,000 a year: Flat - tax rate is 20%, Progressive - tax rate is 25%.

Step2: Compare tax rates

• For $20,000: 20% (flat) > 10% (progressive).
• For $50,000: 20% (flat) > 15% (progressive).
• For $80,000: 20% (flat) = 20% (progressive).
• For $900,000: 20% (flat) < 25% (progressive).

Answer:

someone earning $20,000 a year, someone earning $50,000 a year