Use the Following to Answer Question

question 20

Multiple Choice

Use the following to answer question:
-(Table: Three Tax Structure Proposals) Use Table: Three Tax Structure Proposals.If one wished to use a proportional or flat tax structure,one should use proposal _____,in which the percentage of income taxed is _____%.

• A)1;20
• B)2;10
• C)3;20
• D)2;20

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Definitions:

Disposable Income

Households' financial resources for expenditure and savings following income tax deductions.

Savings

Money set aside for future use rather than spent immediately.

Savings

The portion of income not spent on current consumption or taxes, instead set aside for future use or investment.

Disposable Income

The money households have for spending and saving after subtracting income taxes.