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b. The tax law is changed so that income of less than $6,000 is untaxed, income from $6,000 to $20,000 is taxed at a rate
b. The tax law is changed so that income of less than $6,000 is untaxed, income from $6,000 to $20,000 is taxed at a rate of 0.20, and income of more than $20,000 continues to be taxed at a rate of 0.30. Find the average tax rate and the marginal tax rate for someone earning $16,000 and for someone earning $28,000. (Your answers should be accurate to three decimal places.) The average tax rate on someone with income of $16,000 is The average tax rate on someone with income of $28,000 is The marginal tax rate on someone with income of $16,000 is The marginal tax rate on someone with income of $28,000 is
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