The authors of the two passages would be most likely to disagree over whether

Manvir on December 3, 2019

Why is D wrong?

In line 14, passage A makes it seem like the high income earners pay a share of their entire incomes In line 27-38, it makes it seem that they only put tax on portion of income So don't they disagree about how much is being taxed under the progressive tax?

Reply

Ben on December 3, 2019

Hi Manvir, thanks for the question!

I think it is important to understand how a progressive tax system is described in the passage. Let's imagine a hypothetical system in which all income under $100,000 is taxed at 10% and income between $100,000 and $200,000 is taxed at 20%. Someone making $100,000 will be taxed at 10% ($10,000 total), while someone making $200,000 will be taxes at 10% for the first layer and 20% for the second layer (For a total of $30,000).

The overall tax rate on the first earner is 10%, while the overall tax rate on the second earner is 15%. So in a progressive system, high-income earners still do get taxed at a higher rate over their entire income (effectively), although not at the 20% an uninformed individual may expect.

The two authors do not disagree that high-income earners pay more under a progressive tax system, passage B simply explains that there are layers of higher tax income levels, which is not applied to the person's income as a whole, but each layer will have its respective tax rate.

Let me know if this was clear, and please ask any other questions you may have!