Tony, Juan, and Isabel live in a city where the combined state and local sales tax rate is 8\%. They each purchased the same computer and paid \$160 in sales tax.
Income Cost of computer Sales tax paid Tax rate
Tony\$10,000 \$2,000 \$160 1.6\%
Juan\$50,000 \$2,000 \$160 0.32\%
Isabel\$75,000 \$2,000 \$160 0.21\%
This scenario describes a [blank] tax system. Isabel pays [blank] Tony and Juan on the computer.
[blank] pays the highest tax rate on the computer.
[blank] would be the most affected by an increase in the sales tax rate.
| Income | Cost of computer | Sales tax paid | Tax rate | |
Tony | \$10,000 | \$2,000 | \$160 | 1.6\% |
Juan | \$50,000 | \$2,000 | \$160 | 0.32\% |
Isabel | \$75,000 | \$2,000 | \$160 | 0.21\% |