Suppose you pay 2.5 percent of your income in a state income tax and 12 percent of your labor earnings in federal payroll taxes. You also pay federal income taxes as in the following table:

From $0 to $15,000, the tax rate is 15%

Above $15,000, the tax rate is 25%

If you earn $55,000, how much you would pay in (a) state income tax, (b) federal payroll tax, (c) federal income tax?

What is the marginal and the average tax rates you pay?

Is the system progressive, proportional or regressive?