Final answer:
The difference between paying more in taxes and paying a higher tax rate can be illustrated with an example. One individual may pay a lower amount of taxes compared to another individual, but the second individual may have a higher tax rate. In this example, the second individual is paying more in taxes (total amount), but the first individual is paying a higher tax rate (percentage of income).
Step-by-step explanation:
The difference between paying more in taxes and paying a higher tax rate can be illustrated with an example. Let's consider two individuals, one earning $20,000 per year and the other earning $200,000 per year. The first individual may pay a lower amount of taxes compared to the second individual, but the second individual may have a higher tax rate.
For instance, the first individual may pay $2,000 in taxes at a 10% tax rate, while the second individual may pay $50,000 in taxes at a 25% tax rate. In this example, the second individual is paying more in taxes (total amount), but the first individual is paying a higher tax rate (percentage of income).