Question

Veronica earns $60,000 per year. Matt's yearly income is $37,000. In a progressive tax system,

O Veronica will pay less income tax and Matt will pay more
O Veronica and Matt will pay the same amount of income tax
O Veronica will pay more taxes and Matt will have a government flat tax rate this year
O Veronica will pay more taxes and Matt will pay less taxes to the government

Answer 1

Veronica will pay more taxes and Matt will pay less taxes to the government

Step-by-step explanation:

In a progressive tax system, the percentage rate of taxation increases as the income rises. It means that individuals with a high income will be taxed at a higher tax rate than low-income earners. A progressive tax rate is based on an individual income level; the higher the income, the higher the tax rate.

Veronica earns more than Matt. Under the progressive tax system, veronica will be taxed at a higher rate than Matt. Therefore, veronica will pay more taxes than Matt.