On average, the portion of a person's earnings that goes to taxes is
A. one half
B. one fifth
C. one fourth
D. one third
Answer (1)
Convert each option to a percentage.
Assess the reasonableness of each option based on general knowledge of tax rates.
Select the option that best represents a typical average tax burden.
The average portion of a person's earnings that goes to taxes is \boxed{one third}.
Explanation
Analyzing the Options Let's analyze the given options to determine which one represents the average portion of a person's earnings that goes to taxes. We will consider each option as a percentage and assess its reasonableness based on general knowledge of tax rates.
Converting Options to Percentages
One half (1/2) represents 50% of earnings.
One fifth (1/5) represents 20% of earnings.
One fourth (1/4) represents 25% of earnings.
One third (1/3) represents approximately 33.3% of earnings.
Assessing the Reasonableness of Each Option Based on general knowledge, tax rates vary widely depending on income level, location, and tax policies. However, a reasonable average portion of earnings going to taxes is typically between 20% and 35%. Considering the given options, one fourth (25%) and one third (approximately 33.3%) fall within this range. However, one third is generally a more accurate representation of the average tax burden in many countries.
Selecting the Best Option Therefore, the most reasonable answer is one third.
Final Answer The average portion of a person's earnings that goes to taxes is one third.
Examples
Understanding the average portion of earnings that goes to taxes helps individuals plan their finances effectively. For example, if someone earns $60,000 a year and knows that approximately one third goes to taxes, they can estimate their net income to be around $40,000. This knowledge is crucial for budgeting, saving, and making informed financial decisions. Tax planning is an essential aspect of personal finance, and this problem highlights the importance of understanding tax rates and their impact on income.
