Question
Suppose Family A makes $41,000 per year and Family B makes $147,000 per year. Both families need to spend $2,010 per year on household goods
Suppose Family A makes $41,000 per year and Family B makes $147,000 per year.
Both families need to spend $2,010 per year on household goods (cleaning supplies, hygiene products, etc.).
If the sales tax is 9%, then how much does each family pay in sales tax? (round to the nearest cent)
What is the percent of the family income for Family A? % (round to three decimal places)
What is the percent of the family income for Family B? % (round to three decimal places)
Family A pays Select an answer a lower, a higher, the same percent of their income as Family B? Therefore, this is an example of a progressive, regressive, or flat tax?
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