Which of the following examples illustrates a proportional income tax?
A) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,000 in taxes.
B) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $500 in taxes.
C) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $800 in taxes.
D) I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,200 in taxes.
Correct Answer:
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