Suppose we have the following schedule of tax rates 10% on the first $10,000 15% on the
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Question:
- Suppose we have the following schedule of tax rates
10% on the first $10,000
15% on the next $20,000
20% on the next $30,000
30% on anything above that
- Calculate the total taxes owed by someone with $55,000 of income. What is his marginal tax rate? What is his average tax rate?
- Suppose that someone’s income rises from $55,000 to $65,000 due to a promotion. How much does his after-tax income change?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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