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A person has gotten a new job with a much higher salary. Even though he'll be
making more money, he wants to start saving at a much higher rate. As a
result, he plans to spend even less money this year than he did last year.
Which statement best describes the tax situation this person will likely face in
the next year?
A. He will pay more in both property tax and income tax.
B. He will pay more in income tax but less in sales tax.
C. He will pay more in sales tax but less in income tax.
O D. He will pay more in both income tax and sales tax.

Respuesta :

AlgebraIsMyThing

Answer:

B

Step-by-step explanation:

because he earns more, he will have to pay more tax. however since he spends less, he will pay less sales tax.

The statement that best describes the tax situation with this new job is;

Option B; He will pay more in income tax but less in sales tax.

  • He has gotten a job with a higher salary. Since tax comes at a fixed percentage, it implies that he will be paying more in tax when compared to the previous job.

Let us look at the options;

  • Option A; This is not correct because property tax only increases when the value of your home increases and has nothing to do with an increase in salary.

  • Option B; This option is correct because an increase in income leads to an increase in income tax while sales tax will reduce because he wants to spend less and as such will accrue lesser sales taxes.

  • Option C; This is the opposite of Option B and as such it is not correct.

  • Option D; He will pay more income tax as explained in option B but sales tax will reduce and not increase. Thus the statement is wrong.

Read more at; https://brainly.com/question/19501172

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