Answer the question.
-Suppose that of the total amount collected in taxes by the U.S. government, 25% of it comes from families with incomes greater than $200,000.
If taxes are increased by 5% across the board, which of the following statements will be true?
A)5% of the additional revenue will come from each income group.
B)The total amount collected from families with incomes greater than $200,000 will increase by 25%.
C)A family with an income greater than $200,000 will have to pay 25% more in taxes.
D)25% of the additional revenue collected by the government will come from families with incomes greater than $200,000.

Question

Quizplus · Accepted Answer

Since the tax increase is applied across the board and families with incomes greater than $200,000 already contribute 25% of the total tax revenue, the proportion of additional revenue from these families will also be 25%, assuming the income distribution remains constant.

Answer the Question. -Suppose That of the Total Amount Collected in Taxes by in Taxes