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Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent
Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table: On Taxable Income... The Tax Rate Is... From $0 to $9,075 10.0% From $9,076 to $36,900 15.0% From $36,901 to $89,350 25.0% From $89,351 to $186,350 28.0% From $186,351 to $405,100 33.0% From $405,101 to $406,750 35.0% From $406,751 and above 39.6% Complete the following table with how much tax of each type you pay if you earn $20,000 a year. (Note: Ignore any credits or deductions of one tax type on other tax liabilities. )Amount Tax Type (Dollars) State Income Tax E Federal Payroll Tax \\:| Federal Income Tax \\:| Taking all taxes into account, your average tax rate is V and your marginal tax rate is 'I" . Complete the following table with how much tax of each type you pay if you earn $50,000 a year. Amount Tax Type (Dollars) State Income Tax : Federal Payroll Tax : Federal Income Tax E Taking all taxes into account, your average tax rate is V , and your marginal tax rate is V in this case
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