Ask Question
BusinessBusiness
25 August, 18:29

Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single. Suppose Amanda earns nothing, Ben earns $60,000, and Cathy and Dylan each earn $30,000. They are all single. Amanda pays no tax because she has no income. If they all live in a country that has a progressive income tax, which will be higher: the tax that Ben pays or the sum of the taxes Cathy and Dylan pay?

+3
Answers (1)
  1. 25 August, 18:56
    0
    Ben would pay more in taxes.

    Explanation:

    A progressive income tax increases the tax rate as the taxpayer earns more money.

    In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A manufacturing company has a beginning finished goods inventory of $28,800, cost of goods manufactured of $59,000, and an ending finished goods inventory of $28,100. The cost of goods sold for this company is
Answers (1)
Which of the following would be most likely to result from destruction of half of the Florida orange crop due to a hard freeze? a. an increase in the price of oranges b. a decrease in the demand for oranges c. an increase in the supply of oranges d.
Answers (1)
According to the new growth theory a. preventing imports is an important technique that governments can follow to generate greater domestic economic growth. b. patents should be revoked so that all can share the benefits of new technology. c.
Answers (1)
Lupé made a down payment of $9000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 6%/year compounded monthly.
Answers (1)
Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next? a. Service station operators grumble, but pay the tax without passing the cost along to you. b.
Answers (1)
New Questions in Business
Miller Company has a subsidiary located in Saudi Arabia. In order to reduce economic exposure, Miller restructured its operations and increased supply order in Saudi Arabia.
Answers (2)
It would be faster for a human resource manager to use a (an) (blank) to alert employees about a company picnic.
Answers (1)
Why do economists use models? a. Models are used to add complexity to a simple world. b. Models allow us to study a simplified version of a complex world. c. Models allow us to control exogenous factors. d. Models make the world harder to understand.
Answers (2)
On January 1, Wei company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts. a. On February 1, the company determined that $9,800 in customer accounts was uncollectible; specifically, $2,400 for Oakley Co.
Answers (2)
Accounts are classified in the ledger a. alphabetically b. chronologically c. so that accounts used most often are listed first d. in accordance with their appearance in the financial statements
Answers (1)
Home » Business » Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single.
Sign Up Forgot Password?