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Song earns $ 1 2 5 , 0 0 0 taxable income as an interior designer and is taxed at an average rate of 2
Song earns $ taxable income as an interior designer and is taxed at an average rate of percent ie $ of tax
Required:
a If Congress increases the income tax rate such that Song's average tax rate increases from percent to percent, how much more income tax will she pay assuming that the income effect is descriptive?
Note: Round your intermediate calculations and final answer to decimal places.
b If the income effect is descriptive, the tax base and the tax collected will increase.
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Required B
If Congress increases the income tax rate such that Song's average tax rate increases from percent to percent, how much more income tax will she pay assuming that the income effect is descriptive?
Note: Round your intermediate calculations and final answer to decimal places.
Additional income tax
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