Question
Jurisdiction X levies a flat 10 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no
Jurisdiction X levies a flat 10 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax.
Required:
Mr. Hill earned $80,000 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate.
Ms. Lui earned $38,000 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate.
Ms. Archer earned $28,200 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate.
What type of rate structure does Jurisdiction X use for its individual income tax?
a. Income tax | ||
a. Average tax rate | % | |
a. Marginal tax rate | % | |
b. Income tax | ||
b. Average tax rate | % | |
b. Marginal tax rate | % | |
c. Average tax rate | % | |
c. Marginal tax rate | % |
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