In a certain jurisdiction, John who is earning $35,000 currently pays a flat percentage of 15% in income tax. The tax

authorities suggest a change to a progressive income tax system, where the rules for taxation are as follows:

1. Charging 10% on a person's income up to $20,000

2. Charging 30% on any income above that

How much more will john be paying in income tax under the proposed changes? Give your answer in dollars to the nearest

dollar.

Question

Israel Cochran

Mathematics

10 December, 11:52

In a certain jurisdiction, John who is earning $35,000 currently pays a flat percentage of 15% in income tax. The tax

authorities suggest a change to a progressive income tax system, where the rules for taxation are as follows:

1. Charging 10% on a person's income up to $20,000

2. Charging 30% on any income above that

How much more will john be paying in income tax under the proposed changes? Give your answer in dollars to the nearest

dollar.

+3

Answers (1)

Know the Answer?

Walker Leach · Answer 1

Answer: $1,250

Step-by-step explanation:

Flat percentage income tax: $35,000 * 0.15 = $5,250

Progressive income tax: $20,000 * 0.10 + $15,000 * 0.30 = $6,500

The difference between the two tax rates: $6,500 - $5,250 = $1,250