Shane lives in a county with a progressive tax system where the first $15,000 is taxed at 10%, the next $30,000 is
taxed at 20%, and anything above that is tax
ed at 25%. If Shane’s income is $70,000, how much must he pay in tax?

Respuesta :

The total tax that is paid is $13,750.

What is the total tax?

A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.

Tax paid on the first 15,000 = 10% x 15,000 = 1500

Tax paid on the next $30,000 = 20% x 30,000 = 6,000

Tax paid on the remaining 25,000 (70,000 - 15,000 - 30,000) = 25% x 25,000 = 6250

Total tax paid = 1,500 + 6000 + 6250 = $13,750

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