Question: Using information from the table below, calculate the average tax rate and marginal tax rate as income changes from 20 000 to 50 000 and

 Using information from the table below, calculate the average tax rate

Using information from the table below, calculate the average tax rate and marginal tax rate as income changes from 20 000 to 50 000 and from 50 000 to 100 000 for tax system A, B, and C. Describe the relationship between average tax rates and marginal tax rates for each of these three systems. Which rate is more relevant for judging the vertical equity of a tax system? -I--E}-- Amount of Tax Amount of Tax Amount of Tax 20 000 5 000 6 000 4 000 50 000 12 500 12 500 12 500 100 000 25 000 20 000 30 000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!