Suppose the government has been taxing each person's income at a marginal rate of 49 for every dollar in excess of $50,000 with the first $50,000 earned not taxed In addition, the government imposes a lump sum tax of $5,000 on every person who earns $100,000 or more Write out and graph income after tax, y, as a function of income before tax, x Indicate why the function has a point of discontinuity at x $100,000 Discuss any incentive effects on hours worked that may arise due to this discontinuity in the tax schedule (5 marks) Suppose the government has been taxing each person's income at a marginal rate of 49 for every dollar in excess of $50,000 with the first $50,000 earned not taxed In addition, the government imposes a lump sum tax of $5,000 on every person who earns $100,000 or more Write out and graph income after tax, y, as a function of income before tax, x Indicate why the function has a point of discontinuity at x $100,000 Discuss any incentive effects on hours worked that may arise due to this discontinuity in the tax schedule

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Suppose the government has been taxing each person's income at a marginal rate of  49 for every dollar in excess of $50,000 with the first $50,000 earned not taxed  In addition, the government imposes a lump  sum tax of $5,000 on every person who earns $100,000 or more  Write out and graph income after tax, y, as a function of income before tax, x  Indicate why the function has a point of discontinuity at x   $100,000  Discuss any incentive effects on hours worked that may arise due to this discontinuity in the tax schedule  (5 marks) Suppose the government has been taxing each person's income at a marginal rate of  49 for every dollar in excess of $50,000 with the first $50,000 earned not taxed  In addition, the government imposes a lump  sum tax of $5,000 on every person who earns $100,000 or more  Write out and graph income after tax, y, as a function of income before tax, x  Indicate why the function has a point of discontinuity at x   $100,000  Discuss any incentive effects on hours worked that may arise due to this discontinuity in the tax schedule

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Suppose the government has been taxing each person's income at a marginal rate of .49 for every dollar in excess of $50,000 with the first

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