A country is considering two income tax rates. Geoffrey is comparing what his tax bill would be under each plan. Under plan A, he pays 5% on the first $10,000. The next $85,000 is taxed at a rate of 10%. Any money earned above $95,000 is
taxed at 15%. He made $98,000 last year. Which statement below is correct?
Plan A Tax Rates
x <$10,000
$10,000 < x < $95,000
x > $95,000
5%
10%
15%
Plan B Tax Rates
All levels of income
10%
He would pay approximately $350 more under plan B.
He would pay approximately $1,925 more under plan B.
O He would pay approximately $5,700 more under plan A.
He would pay approximately $4,900 more under plan A.