Question
Country Y has a progressive tax system for income, with no credits or deductions. Who would pay the most as a percentage of income in Country Y?
Lawyer earning $110,000 per year
Teacher earning $45,000 per year
CEO earning $2.5 million per year
Roofer earning $18,000 per year
Lawyer earning $110,000 per year
Teacher earning $45,000 per year
CEO earning $2.5 million per year
Roofer earning $18,000 per year
Answers
GPT-4o mini
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:
1. **Lawyer earning $110,000** - likely pays a moderate percentage.
2. **Teacher earning $45,000** - likely pays a lower percentage compared to the lawyer.
3. **CEO earning $2.5 million** - likely pays the highest percentage because they would be in the top tax brackets.
4. **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.
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:
1. **Lawyer earning $110,000** - likely pays a moderate percentage.
2. **Teacher earning $45,000** - likely pays a lower percentage compared to the lawyer.
3. **CEO earning $2.5 million** - likely pays the highest percentage because they would be in the top tax brackets.
4. **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.