Portugal has a progressive personal income tax system. In 2016, tax rates on taxable income were (14.5

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Portugal has a progressive personal income tax system. In 2016, tax rates on taxable income were \(14.5 \%\) on the first \(€ 7,035,21 \%\) on the next \(€ 13,065,37 \%\) on the next \(€ 20,100,45 \%\) on the next \(€ 39,800\), and \(48 \%\) on taxable income over \(€ 80,000\). If Afonso had \(€ 30,000\) of taxable income in 2016, what was his average tax rate? If he had one more euro of taxable income, how much of that euro would he have kept after tax? What does this tell you about the marginal and average tax rates under a progressive income tax system? 

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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