Which of the Following Examples Illustrates a Proportional Income Tax

question 38

Multiple Choice

Which of the following examples illustrates a proportional income tax?

• A) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,000 in taxes.
• B) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $500 in taxes.
• C) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $800 in taxes.
• D) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,200 in taxes.

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Definitions:

Practical Wisdom

The ability to make sound judgments and decisions based on experience and understanding, particularly in everyday matters.

Thinking Process

A cognitive operation involving reasoning, problem-solving, and decision-making, where an individual engages in mental activities to analyze information and come to conclusions.

Digital Divide

The gap between individuals who have access to modern information and communication technology and those who do not.

Technical Class

A segment of the workforce with specialized technical skills and knowledge, often associated with fields such as engineering, information technology, and applied sciences.