In a progressive tax system, the tax rate increases as income increases. However, the actual percentage of income paid in taxes can vary based on the specific tax brackets in place.
Typically, individuals with lower incomes might fall into lower tax brackets and pay a smaller percentage of their income in taxes, while those with higher incomes would fall into higher tax brackets and pay a larger percentage.
In this scenario:
- Lawyer earning $110,000 - likely pays a moderate percentage.
- Teacher earning $45,000 - likely pays a lower percentage compared to the lawyer.
- CEO earning $2.5 million - likely pays the highest percentage because they would be in the top tax brackets.
- Roofer earning $18,000 - likely pays the lowest percentage due to being in the lowest tax brackets.
Therefore, the CEO earning $2.5 million per year would pay the most as a percentage of income in a progressive tax system, assuming typical progressive tax structure applies.
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