Jurisdiction X levies a flat 13 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax.

Required:

1. Mr. Hill earned $90,500 income this year. Compute his income tax and determine his average and marginal tax rate.
2. Ms. Lui earned $42,800 income this year. Compute her income tax and determine her average and marginal tax rate.
3. Ms. Archer earned $31,200 income this year and paid no income tax. Describe her average and marginal tax rate.
4. What type of rate structure does Jurisdiction X use for its individual income tax?