Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with my homework pre: 27.8% Resources Q Hint Taxes - End of Chapter Problem The following tax proposal has income as the tax

Need help with my homework

image text in transcribed
pre: 27.8% Resources Q Hint Taxes - End of Chapter Problem The following tax proposal has income as the tax base. Calculate the marginal tax rate for an income of $5,000 and an income of $40,000. Then, calculate the percentage of income paid in taxes for an individual with a pre-tax income of $5,000 and for an individual with a pre-tax income of $40,000. Classify the tax as being proportional, progressive, or regressive. Round answers to two places after the decimal, where applicable. Tax Proposal: All income between $0 and $10,000 is taxed at 10%. All income between $10,000 and $20,000 is taxed at 20%. All income higher than $20,000 is taxed at 30%. a. marginal tax rate; income of $5,000: 9% marginal tax rate; income of $40,000: % b. percentage paid on an income of $5,000: percentage paid on an income of $40,000: c. This tax is proportional. progressive. regressive

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

Human Resources In The Urban Economy

Authors: Mark Perlman

1st Edition

1317332474, 9781317332473

More Books

Students also viewed these Economics questions

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago