Suppose in Fiscalville there is no tax on the first $10,000 of income, but Fiscalville imposes a

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Suppose in Fiscalville there is no tax on the first $10,000 of income, but Fiscalville imposes a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. If your income is $50,000, how much will you pay in taxes? Determine your marginal and average tax rates. Is this a progressive tax? LO5

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Essentials Of Economics

ISBN: 9780077502140

3rd Edition

Authors: Stanley Brue, Campbell McConnell, Sean Flynn

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