Question: Give a numerical example that shows the difference between the average tax rate and the marginal tax rate on a person's income. For a constant

Give a numerical example that shows the difference between the average tax rate and the marginal tax rate on a person's income. For a constant before-tax real wage, which type of tax rate most directly affects how wealthy a person feels? Which type of tax rate affects the reward for working an extra hour?

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An example would be no tax on income below 15 000 then a tax at 20 on inc... View full answer

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