Suppose that the federal income tax on individuals is set up as follows:

Calculate the average tax rate and marginal tax rate for workers with the following levels of income:

a. \(\$ 6500\)

b. \(\$ 27,000\)

c. \(\$ 72,000\)

d. \(\$ 250,000\)

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Income Income above below Taxes 0 $8000 0.10 x income $8000 $35,000 $800+ [0.15 X (income - $8000)] $35,000 and up - $4850[0.25 X (income $35,000)]