An income tax taxes 1% of the first $10,000 of income and 2% on all income above
Question:
An income tax taxes 1% of the first $10,000 of income and 2% on all income above
$10,000.
a. What is the marginal tax rate for someone with income of $5,000? How much total tax does this person pay? How much is this as a percentage of his or her income?
b. What is the marginal tax rate for someone with income of $20,000? How much total tax does this person pay? How much is this as a percentage of his or her income?
c. Is this income tax proportional, progressive, or regressive?
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Answer Lets calculate the marginal tax rate total tax paid and the percentage of income paid in taxe...View the full answer
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Muhammad Umair
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