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Government G levies an income tax with the following rate structure: Percentage Rate Bracket 6 % Income from 0 to $30,000 10 Income from $30,001

Government G levies an income tax with the following rate structure:

Percentage Rate Bracket
6 % Income from 0 to $30,000
10 Income from $30,001 to $70,000
20 Income from $70,001 to $200,000
28 Income in excess of $200,000

Required:

  1. Taxpayer As taxable income is $122,500. Compute As tax and average tax rate. What is As marginal tax rate?
  2. Taxpayer Bs taxable income is $210,000. Compute Bs tax and average tax rate. What is Bs marginal tax rate?

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