Question

Scenario: There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second household is $47,000, the annual income of the third household is $50,000, and the annual income of the fourth household is $71,000. Refer to the scenario above. If each family pays 12% of its income as tax every year, the local government follows a(n) ________ tax system.

Answer 1

Because everyone , regardless of their income is paying the same percentage of their income as tax, the local government is following a flat tax system.

Step-by-step explanation: