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Draw Conclusions Suppose Michelle earns

$40,000 per year and Rosa earns $100,000 per
year. Under a proportional tax, who would pay a
greater percentage of her income in taxes?

1 Answer

6 votes

Answer: They'll both pay same percentage under the proportional tax.

Step-by-step explanation:

A proportional tax is a type of tax whereby the low income earners and the high income earners all pay thesame percentage of their income. For example, if Michelle earns

$40,000 per year and Rosa earns $100,000 per year, a proportional tax will be let's say 10% for both of them.

Therefore, Michelle would pay:

= 10% × $40,000

= 0.1 × $40,000

= $4000

Rosa would pay:

= 10% × $100,000

= 0.1 × $100,000

= $10,000

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