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Question: margo and jonah have two children ages 13 and 17...

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Margo and Jonah have two children, ages 13 and 17, whom they support and who live with them the entire year. Neither child earns any income. Margo and Jonah’s modified AGI is $411,000. What is their total child tax credit and additional dependent credit? A) $1,450 B) $2,900 C) $4,000 D) $1,950

A presidential candidate proposes replacing the current income tax system with a flat income tax system. The flat tax would have a proportional tax rate on income that is the same for all income levels. Which one of the following statements is correct?

A) The change would replace a regressive tax with a progressive tax.

B) The flat income tax increases vertical equity because wealthy taxpayers will pay more proportionally than lower income taxpayers.

C) The flat income tax system would be more complex to calculate than the current income tax system

D) The flat income tax decreases vertical equity since taxpayers with higher income would not necessarily pay more in taxes proportionally than those with lower income.

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