Final answer:
The amount of income tax paid on a taxable income of $20,000, at a 28% tax rate, is 28% of $20,000, which amounts to $5,600. This is calculated by multiplying the taxable income by the tax rate.
Step-by-step explanation:
To calculate the amount of income tax the man pays, we multiply his taxable income by the tax rate of 28%.
Income Tax = Taxable Income x Tax Rate
Income Tax = $20,000 x 0.28
Income Tax = $5,600
Therefore, the man pays $5,600 in income tax.
The question pertains to calculating the amount of income tax a man with a taxable income of $20,000 would owe if taxed at a 28% rate. The formula to find the tax paid on the taxable income is to multiply the taxable income by the tax rate: Tax Paid = Taxable Income × Tax Rate. Applying this formula, 28% of $20,000 is calculated by changing 28% into a decimal (0.28) and multiplying it by $20,000, which equals $5,600.
So, the correct answer is C. $5,600. This is derived directly from the given tax rate and the man's taxable income, without any need to refer to complex tax schedules or marginal tax rate considerations. The use of a flat tax rate simplifies the calculation significantly.