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Jurisdiction X levies a flat 15 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay
Jurisdiction X levies a flat 15 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax. Required: a. Mr. Hill earned $95,400 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate. b. Ms. Lui earned $44,900 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate. c. Ms. Archer earned $32,600 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate. d. What type of rate structure does Jurisdiction X use for its individual income tax? Complete this question by entering your answers in the tabs below. Req A to C Req D a. Mr. Hill earned $95,400 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate. b. Ms. Lui earned $44,900 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate. c. Ms. Archer earned $32,600 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate. Note: For all requirements, round average tax rate answer to 1 decimal place. 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 % Show less
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