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Consider a country that taxes its citizens individually according to the following rate schedule: Taxable Income Marginal Tax Rate First $30,000 15% Over $30,000 up
Consider a country that taxes its citizens individually according to the following rate schedule:
Taxable Income | Marginal Tax Rate |
First $30,000 | 15% |
Over $30,000 up to $60,000 | 20% |
Over $60,000 | 25% |
Suppose that the steps to compute tax liability are the same in this tax system as they are in Canada. For a taxpayer with $20,000 in total income, compare the value to the taxpayer of having $3,000 of this income qualify for a deduction versus having $3,000 of this income qualify for a credit.
The value of the deduction would be ______ the value of the credit for this taxpayer.
multiple choice
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greater than
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less than
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equal to
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