You are offered a choice between paying a flat tax (one rate on all income) of 20% on $44,000 of income and paying a graduated tax of the following schedule on the same income. schedule: 10% on the first $25,000; 30% on your income over $25,000. which is better for you?

It depends on your income and your expectation of future income.  These choices often come up in student loans.  If you come out say, for example, as a social worker and your expected annual income is going to start off as $15,000 and not rise above $30,000-$35,000 you might take the graduated.  But if you are graduating from medical school as a neurosurgeon, you might want the flat rate because while you won't make much while in your residency, once you are on your own and can call your own fees and driving a Porshe, you won't want something based on your income.