Question

In a certain jurisdiction, John who is earning $35,000 currently pays a flat percentage of 15% in income tax. The tax

Answer 1

Answer:  $1,250

Step-by-step explanation:

Flat percentage income tax: $35,000 × 0.15 = $5,250

Progressive income tax: $20,000 × 0.10 + $15,000 × 0.30 = $6,500

The difference between the two tax rates: $6,500 - $5,250 = $1,250