The table shows the income and tax paid by two workers under a particular tax system. Worker Income ($) Tax paid ($) A 30 000 6000 B 60 000 12 000 This conf...
Question 1 Report
The table shows the income and tax paid by two workers under a particular tax system.
| Worker | Income ($) | Tax paid ($) |
|---|---|---|
| A | 30 000 | 6000 |
| B | 60 000 | 12 000 |
Answer Details
The correct answer is that both workers pay the same percentage of their income in tax.
A proportional tax (also called a flat-rate tax) charges the same percentage of income regardless of how much a person earns.
- Worker A: $6,000 / $30,000 = 20%
- Worker B: $12,000 / $60,000 = 20%
Both workers pay exactly 20% of their income in tax, confirming the tax is proportional.
They do not pay the same amount in tax (Worker B pays $12,000 while Worker A pays $6,000), so that option is incorrect. A progressive tax would require the higher earner to pay a higher percentage. A regressive tax would mean the lower earner pays a higher percentage. Neither is the case here.
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