In a fictitious far away country income tax is not charged on the first $10,000 of annual income. After that, tax is charged at a 20% rate on the amount beyond the $10,000 allowance. If income exceeds the allowance by more than $30,000, however, earnings beyond that amount are taxed at 40%.

Arthur earns $20,000 per year. Barry earns $50,000 per year. How much more income tax (as a ratio) does Barry pay?

Author : Leslie Green