Use the following table to answer the questions. a. What is the average tax rate at each

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Use the following table to answer the questions.

Annual Income $15,000 30,000 45,000 60,000 75,000 Tax Liability $0 4,500 11,250 21,000 30,000

a. What is the average tax rate at each income level?
b. Based on these data, is the tax progressive or regressive? Briefly explain.
c. Is it possible to determine, based on these data, the marginal tax rate of someone earning $65,000 per year? Briefly explain.

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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