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