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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 $30,000 a year. (Note: Ignore any credits or deductions of one tax type on other tax liabilities.)

Tax Type Amount
(Dollars)
State Income Tax
Federal Payroll Tax
Federal Income Tax

Taking all taxes into account, your average tax rate is and your marginal tax rate is .

Complete the following table with how much tax of each type you pay if you earn $60,000 a year.

Tax Type Amount
(Dollars)
State Income Tax
Federal Payroll Tax
Federal Income Tax

Taking all taxes into account, your average tax rate is , and your marginal tax rate is in this case.

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