Answer to Question #247541 in Macroeconomics for Ausi

Question

Jane earns an income of R10 000 a month and pays R1 500 towards income tax, and when her income increases to R24 000 a month, she now pays R4 200 towards income tax. This is an example of a 

Answer 1

This is an example of an increase in the income tax rate depending on the level of wages.

With an income of 10,000, Jane pays income tax in the amount of (1,500 / 10,000) x 100% = 15%

With an income of 24000, she pays income tax in the amount of (4200/24000) x100% = 17.5%