Individual Taxation marginal, average, and progressive rates The marginal rate is the highest rate a taxpayer pays. The average rate is total tax divided by total income. John works and Martha is a housewife. Their income is Their deductions & adjustments are Their taxable income is $110,000 $95,000 Their taxis 16,700 x.10 1670 51200 x.15 7680 27100x.25 6775 $16125 1. Is the tax progressive, regressive, or proportional? 2. What is the marginal rate? 3. What is the average rate? 4. Martha was offered a job for $27,000. She will have to pay $800 a month for daycare, social security tax & Medicare is 7.65%. Should Martha take the job? What costs may rise if Martha takes a job? 5. If a politician wanted to have a flat tax at 15%, should Martha & John vote for him? 6. If Martha & John made $30,000 should they vote for the politician that wants a 15% flat tax