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Each month, the United states and France purchase steel from Slovaki. The US purchases $10,000,000 worth of steel each month while France only purchases $1,000,000
Each month, the United states and France purchase steel from Slovaki. The US purchases $10,000,000 worth of steel each month while France only purchases $1,000,000 worth each month. Slovakia levies taxes based upon the following schedule.
TAX LEVY SCHEDULE:
Amount Purchased Tax Rate
0 < $2,000,000 5%
$2,000,001 < $7,500,000 6%
More than $7,500,001 7%
1) Determine the marginal tax rate for the United states and France
2) Determine the average tax rate for the US and France
3) Determine whether the tax rate is proportional, regressive or progressive
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