1.1. An income tax taxes 1% of the first $10,000 of income and 2% on all income...

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1.1. 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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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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