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Question number two is the one I need help on. 1. Suppose that on the first $10,000 of income people must pay 10 percent of
Question number two is the one I need help on.
1. Suppose that on the first $10,000 of income people must pay 10 percent of their income in taxes. Also suppose that for the next $10,000 in income they must pay 20 percent in taxes, and for the next $10,000 they must pay 30 percent in taxes. Compute the average and marginal tax rates for each of three people who earn (respectively) $5,000,$15,000, or $25,000. 2. Referring back to the previous question, suppose that each of these people is paid the same before-tax hourly wage, but that they work 500 hours per year, 1,500 hours per year, and 2,500 hours per year, respectively. Calculate the after-tax hourly wage that each is earning. Comparing these people, who would you say likes leisure the most (combared to work)? Who likes leisure least compared to work Step by Step Solution
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