Question

Mr. and Mrs. Jones have three children, earn $22,000 at their jobs, and have no other income. We may conclude that they Question 6 options: probably pay more payroll tax than federal personal income tax. definitely pay more payroll tax than federal personal income tax. probably pay more federal personal income tax than payroll tax. definitely pay more federal personal income tax than payroll tax.

Answer 1

The Jones family, with an income of $22,000, probably pays more in payroll taxes than federal personal income tax due to the regressive nature of payroll taxes and the progressive nature of income taxes.

Step-by-step explanation:

The question pertains to the comparison of payroll tax and federal personal income tax paid by a hypothetical family, Mr. and Mrs. Jones, with three children and a total income of $22,000 from jobs.

Given the nature of the United States tax system, where payroll taxes fund Social Security and Medicare and are generally considered regressive due to being capped at a certain income level, it is likely that families with lower incomes, such as the Jones, would pay more in payroll taxes than in federal personal income tax.

The income tax, being progressive, increases with higher income levels and would therefore likely constitute a smaller portion of the tax burden for the Jones family at their stated income level.