the total amount someone pays in taxes depends on their income. but there are different ways to determine…

the total amount someone pays in taxes depends on their income. but there are different ways to determine how much money people should pay. some states have a flat tax, meaning that the tax rate is the same regardless of income. but the federal income tax is progressive, meaning that the tax rate is higher for higher incomes.\ncompare an example of flat and progressive taxes in the table below. then answer the question.\nwhose tax rates would be lower under the flat tax system, compared with the progressive tax system?\nsomeone earning $25,000 a year\nsomeone earning $60,000 a year\nsomeone earning $90,000 a year\nsomeone earning $700,000 a year

the total amount someone pays in taxes depends on their income. but there are different ways to determine how much money people should pay. some states have a flat tax, meaning that the tax rate is the same regardless of income. but the federal income tax is progressive, meaning that the tax rate is higher for higher incomes.\ncompare an example of flat and progressive taxes in the table below. then answer the question.\nwhose tax rates would be lower under the flat tax system, compared with the progressive tax system?\nsomeone earning $25,000 a year\nsomeone earning $60,000 a year\nsomeone earning $90,000 a year\nsomeone earning $700,000 a year

Answer

Explanation:

Step1: Determine income brackets

For someone earning $25,000: flat tax rate = 20%, progressive tax rate = 10% For someone earning $60,000: flat tax rate = 20%, progressive tax rate = 15% For someone earning $90,000: flat tax rate = 20%, progressive tax rate = 20% For someone earning $700,000: flat tax rate = 20%, progressive tax rate = 25%

Step2: Compare tax rates

  • For $25,000: 20% (flat) > 10% (progressive) → flat tax rate is higher
  • For $60,000: 20% (flat) > 15% (progressive) → flat tax rate is higher
  • For $90,000: 20% (flat) = 20% (progressive) → rates are equal
  • For $700,000: 20% (flat) < 25% (progressive) → flat tax rate is lower

Answer:

someone earning $700,000 a year