The sales tax on a $20 hammer is 7 percent, or $1.40. why is this tax a bigger burden for josh, who has a $15,000 income, than for aaron, who has a $150,000 income?

Respuesta :

the tax represents a larger proportion of josh's income

Answer:

The ratio of the sales tax to Josh income is greater than the sales tax to aaron income (As the income of the Josh is less as compared to the arron income) this shows the tax is bigger burden for the Josh as compared to the aaron .

Step-by-step explanation:

As given

The sales tax on a $20 hammer is 7 percent, or $1.40.

As income of the  josh is 15000 and the income of the aaron is $150000 .

Now the ratio of the sales tax to the josh income .

[tex]\frac{Sales\ tax}{Josh\ income} = \frac{1.40}{15000}[/tex]

[tex]\frac{Sales\ tax}{Josh\ income} = \frac{14}{15000\times 10}[/tex]

[tex]\frac{Sales\ tax}{Josh\ income} = \frac{7}{75000}[/tex]

In decimal form

[tex]\frac{Sales\ tax}{Josh\ income} = 0.000093\ (Approx)[/tex]

Now the ratio of the  sales tax to the aaron income .

[tex]\frac{Sales\ tax}{aaron\ income} = \frac{1.40}{150000}[/tex]

[tex]\frac{Sales\ tax}{aaron\ income} = \frac{14}{150000\times 10}[/tex]

[tex]\frac{Sales\ tax}{aaron\ income} = \frac{7}{750000}[/tex]

In decimal form

[tex]\frac{Sales\ tax}{aaron\ income} = 0.0000093\ (Approx)[/tex]

Thus as the ratio of the sales tax to Josh income is greater than the sales tax to aaron income (As the income of the Josh is less as compared to the arron income) this shows the tax is bigger burden for the Josh as compared to the aaron .