Consider an economy with the following tax brackets. 10% income tax rate for the first $20,000 in
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Question:
Consider an economy with the following tax brackets.
- 10% income tax rate for the first $20,000 in earnings
- 20% income tax rate for earnings between $20,001 and $40,000
- 30% income tax rate for earnings between $40,001 and $60,000
- 40% income tax rate for earning of $60,001 or above
In this economy, a worker earning $60,000 would pay 10% on the first $20,000 earned, 20% on the second $20,000 earned, and 30% on the last $20,000 earned, for a total of $12,000 in incometax.
An advocate of supplyside economics would favor
Group of answer choices
An increase of the 40% tax rate in the $60,000 and above tax bracket.
An increase of the tax rate for all tax brackets.
A reduction of the 40% tax rate in the $60,000 and above tax bracket.
issuing a tax rebate check of $500 to all workers in the economy.
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