3) Assume that you face the following tax bracket- If vour income is between:* $0-$20,000 $20,001-$50,000 $50,001-$80,000 $80,001+ Your tax due is: 10% of income $2,000 + 15% of the amount over $20,000- I+' $6,500 25% of the amount over $50,000, |q) $14,000 + 40% of the amount over $80,000-14 A) What will the average and marginal tax rates be for an individual with $60,000 in income? What about $90,000 in income? (10pts) B) Now assume that Congress votes to adjust the income brackets by $10,000 as follows: If vour income is between:* $0-$30,000 $30,001-$60,000 $60,001-$90,000 $90,001+ Your tax due is: 10% of income. $3,000 + 15% of the amount over $30,000- $7,500 + 25% of the amount over $60,000, $15,000 + 40% of the amount over $90,000+, I+' |q) -, Recalculate the average and marginal tax rates for individuals making $60,000 and $90,000? Would this policy change cause labor supply to increase, decrease, or stay the same? (10pts)