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		%