Question: Need help with my homework pre: 27.8% Resources Q Hint Taxes - End of Chapter Problem The following tax proposal has income as the tax
Need help with my homework

pre: 27.8% Resources Q Hint Taxes - End of Chapter Problem The following tax proposal has income as the tax base. Calculate the marginal tax rate for an income of $5,000 and an income of $40,000. Then, calculate the percentage of income paid in taxes for an individual with a pre-tax income of $5,000 and for an individual with a pre-tax income of $40,000. Classify the tax as being proportional, progressive, or regressive. Round answers to two places after the decimal, where applicable. Tax Proposal: All income between $0 and $10,000 is taxed at 10%. All income between $10,000 and $20,000 is taxed at 20%. All income higher than $20,000 is taxed at 30%. a. marginal tax rate; income of $5,000: 9% marginal tax rate; income of $40,000: % b. percentage paid on an income of $5,000: percentage paid on an income of $40,000: c. This tax is proportional. progressive. regressive
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
