Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solve question 2 and 3 2. Given the following marginal tax rates and income brackets, calculate the effective tax rate for an individual earning $80,000

Solve question 2 and 3

image text in transcribed
2. Given the following marginal tax rates and income brackets, calculate the effective tax rate for an individual earning $80,000 in income. Marginal Tax Rate Taxable Income Bracket 10% Up to $20,000 15% $20,001-$35,000 20% $35,001-$55,000 30% $55,001-$80,000 45% $80,001-$120,000 3. Suppose Lena makes $50,000 per year and Mariah makes $65,000 per year. If each pays $5,000 in taxes: a. What would their individual tax rates be? b. Would you describe this tax system as proportional, progressive, or 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_2

Step: 3

blur-text-image_3

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

Microeconomics

Authors: Paul Krugman, Robin Wells

3rd edition

978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434

More Books

Students also viewed these Economics questions

Question

Technology

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago