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This past year, Abe earned $30,000; Betty earned $150,000; and Candace earned $12,000 (all wages listed are before tax). Betty paid $45,000 in income taxes.

This past year, Abe earned $30,000; Betty earned $150,000; and Candace earned $12,000 (all wages listed are before tax). Betty paid $45,000 in income taxes. Abe paid $7,500 in income taxes and Candace paid income tax at an effective rate of 15%. Based only on the information given and assuming everyone paid what they were supposed to, what will be the scenario of the tax System? Explain.

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