Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false.
We're both single with no children and we both have the same total (gross) income, so we must both pay the same amount in taxes.
This statement does not make sense (or is clearly false).
The statement does not make sense (or is clearly false).
Although both individuals may have the same total (gross) income and similar personal circumstances (being single with no children), various factors can influence the amount of taxes each person pays. For instance, the deductions, credits, and exemptions available to each individual, as well as any applicable tax brackets, can all affect the final tax liability. Therefore, it is possible for two people with the same income and personal circumstances to have different amounts of taxes to pay.
To determine whether the statement is true or false, we need to understand how taxes are calculated.
In most tax systems, the amount of taxes you owe is determined by a combination of factors, including your income, marital status, and whether you have dependents or children. Let's break down the statement to evaluate it more effectively:
1. "We're both single with no children": This implies that both individuals fall under the same tax filing status, which is "single" in this case. This status is often subject to different tax brackets and rates than other filing statuses.
2. "We both have the same total (gross) income": Assuming that both individuals earn the exact same income before any deductions or exemptions, this means they would fall into the same tax bracket.
Now, we need to consider the concept of a progressive tax system, which is implemented in many countries. In a progressive tax system, as income increases, the tax rates also increase. This means that individuals with higher incomes pay a higher percentage of their income as taxes.
Based on this information, the statement doesn't make sense (or is clearly false). Even if both individuals are single with no children and have the same total income, they may still pay different amounts in taxes. The tax rate may vary for different income ranges.
To determine the exact amount each person would owe in taxes, you would need to refer to the tax laws and regulations of your specific country or jurisdiction, and potentially consult with a tax professional or use tax software/calculators.