Sunday, July 17, 2011

If a person is taxed $100 on an income of $1,000, taxed $220 on an income of $2,000,this person is paying a ..?

b and c are exact opposites, so obviously they both can't be right. B is correct since the tax rate is progressively increased as the income increases. A proportional tax on 2000 would be 200, not 220 since the rate is proportional to the income, not progressively higher.

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