Suppose you are a typical person in the U.S. economy. You pay 4 percent of your...

   

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Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table: On Taxable Income... From $0 to $9,075 From $9,076 to $36,900 From $36,901 to $89,350 From $89,351 to $186,350 From $186,351 to $405,100 From $405,101 to $406,750 From $406,751 and above The Tax Rate Is... 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% 39.6% Complete the following table with how much tax of each type you pay if you earn $20,000 a year. (Note: Ignore any credits or deductions of one tax type on other tax liabilities.) Tax Type State Income Tax Federal Payroll Tax Federal Income Tax Taking all taxes into account, your average tax rate is Amount (Dollars) Tax Type State Income Tax Complete the following table with how much tax of each type you pay if you earn $50,000 a year. Amount (Dollars) Federal Payroll Tax Federal Income Tax and your marginal tax rate is Taking all taxes into account, your average tax rate is I and your marginal tax rate is in this case. Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table: On Taxable Income... From $0 to $9,075 From $9,076 to $36,900 From $36,901 to $89,350 From $89,351 to $186,350 From $186,351 to $405,100 From $405,101 to $406,750 From $406,751 and above The Tax Rate Is... 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% 39.6% Complete the following table with how much tax of each type you pay if you earn $20,000 a year. (Note: Ignore any credits or deductions of one tax type on other tax liabilities.) Tax Type State Income Tax Federal Payroll Tax Federal Income Tax Taking all taxes into account, your average tax rate is Amount (Dollars) Tax Type State Income Tax Complete the following table with how much tax of each type you pay if you earn $50,000 a year. Amount (Dollars) Federal Payroll Tax Federal Income Tax and your marginal tax rate is Taking all taxes into account, your average tax rate is I and your marginal tax rate is in this case.

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Income 20000 State Income Tax 40 of 20000 800 Federal Payroll Tax 153 of 20000 3060 Federal Income T... View the full answer