1) Following is a personal income tax rate table. Answer all of the following questions. Income Over: But NOT Over: Tax is: $0 25,000 35,000 45,000 55,000 65,000 75,000 85,000 95,000 105,000 $25,000 35,000 45,000 55,000 65,000 75,000 85,000 95,000 105,000 -0- 4.5% $450 +4.25% $875 +4.00% $1,275 + 3.75% $1,650 + 3.50% $2,000 + 3.25% $2,325 +3.00% $2,625 +2.75% $2,900 +2.50% of the Amount Over: $0 25,000 35,000 45,000 55,000 65,000 75,000 85,000 95,000 105,000 Mr. Jones has adjusted gross income of $55,000 and taxable income of $37,500. What is Mr. Jones's marginal tax rate to the nearest hundredth of a percent)? (a) What is Jones's average tax rate (to the nearest 100th of a percent)? (b) What is the average effective tax rate that Jones pays (to the nearest hundredth of a percent)? (c) How much would an additional personal deduction of $2,500 reduce Jones's tax liability? (d) How much would a tax credit of $2,500 reduce Jones's tax liability? (e) Is this tax scheme progressive, or regressive? Explain your answer, and provide computations that illustrate your conclusion