Suppose you live in the hypothetical country of Evergreen. Evergreen does not tax the first $10,000 of

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Suppose you live in the hypothetical country of Evergreen. Evergreen does not tax the first $10,000 of income, but imposes a tax of 10% on the next $30,000 of income, 20% on the following $60,000, and a top rate of 30% on any income above $100,000.

a. Suppose your income is $20,000. What is your marginal tax rate? What is your average tax rate?

b. Further suppose your neighbor's income is $50,000. What is her marginal tax rate? What is her average tax rate?

c. Is Evergreen's tax structure progressive, proportional, or regressive?

Related Book For answer-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

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Posted Date: Jun 12, 2019 01:36 AM

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Suppose you live in the hypothetical country of Evergreen. Evergreen does not tax the first $10,000 of

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The marginal tax rate is the percentage of tax that a person pays for one addition dollar of income ... View the full answer

Mathematical Applications for the Management Life and Social Sciences

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