a) Changes in the Kansas Income Tax: The state of Kansas had two state income tax rates in 2016: 2.7% on the first $15,000 of taxable income and 4.6% on taxable income of $15,001 and more for single filers. Suppose the state provides an exemption of $3,000 for a single filer. John earns $60,000 per year.

Calculate his marginal and average tax rate. (1 point for marginal tax, 1 point for average tax). Show your work to receive credit.

b} Kansas reformed the tax system so that in tax year 2017 the new tax brackets became 2.9% on the first $15,000, 4.9% on income over $15,000 but not over $30,000 and 5.2% of taxable income over $30,000. Suppose the exemption is still $3,000 for a single filer. What are the new marginal and average tax rates for John? (1 point for marginal tax, 1 point for average tax). Show your work to receive credit.

c)

Now suppose the state government decided instead to double the top marginal tax rate from 4.6% to 9.2% and leave the 2.7% unchanged. [The original plan was 2.7% on the first $15,000 of taxable income and 4.6% on taxable income of $15,001 and more for single filers.] Suppose the exemption is still $3,000 a year for a single filer. Does this double John's tax liability and average tax rate? Why or why not? (1 point for if it doubles, 1 point for explaining). Show your work to receive credit.