Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marcel's Marginal Tax Rate is 12% but he isn't paying 12% of his income to taxes. What is his Effective Tax Rate? In other words,

image text in transcribed
image text in transcribed
Marcel's "Marginal Tax Rate" is 12% but he isn't paying 12% of his income to taxes. What is his "Effective Tax Rate"? In other words, what actual percentage of his income is going towards taxes? (Tip: To calculate his "Effective Tax Rate" (what he's actually paying), use the following formula: (Regular Taxes/Total Income)*100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modeling Monetary Economies

Authors: Bruce Champ, Scott Freeman, Joseph Haslag

4th Edition

1316508671, 1316508676, 9781316723302 , 978-1107145221

More Books

Students also viewed these Economics questions