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Tom and Jerry live in a society in which the first $10,000 of income is taxed at a rate of 10% and any income above
Tom and Jerry live in a society in which the first $10,000 of income is taxed at a rate of 10% and any income above $10,000 is taxed at a rate of 20%. Tom's income is $5,000, and Jerry's income is $15,000.
According to this tax system, Tom will pay an income tax of, and Jerry will pay an income tax of.
- $500 ; $1,500
- $500 ; $2,000
- $1,000 ; $2,000
- $1,000 ; $3,000
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