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Please answer A and B. 6. (Lump-Sum Tax) Two persons - A and B - earn $5,000 and $50,000 per year, respectively. Suppose the annual
Please answer A and B.
6. (Lump-Sum Tax) Two persons - A and B - earn $5,000 and $50,000 per year, respectively. Suppose the annual vehicle registration tax was $100 per vehicle per year, but it is now raised to $150. (a) (3 points) Calculate the average and marginal tax rates (if you earn $1, then how much tax do you pay for every dollar earn) for each person, before and after the tax increase. (b) (2 points) Is this tax progressive or regressive? DiscussStep by Step Solution
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