Suppose you are a typical person in the UK economy. Refer to Tables 12.3 and 12.4 for

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Suppose you are a typical person in the UK economy.

Refer to Tables 12.3 and 12.4 for income tax and employer’s National Insurance contribution rates. How much income tax do you pay if you earn £25 000 a year?

How much do you pay in National Insurance contributions?

Taking both of these taxes into account, what are your average and marginal tax rates? What happens to your total tax bill and to your average and marginal tax rates if your income rises to £40 000?

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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