The Alabama State has a state income tax with the following components: the state income tax applies only to wages and salaries (not including interest and dividends) the state allows a standard deduction of $1,000 per person the state allows a tax credit equal to $150 per person the marginal tax rates are as shown below marginal tax rate taxable income 0 - $20,000 20,001 - 50.000 >50,000 4 6% 8% Assume that Billy Ray, a resident of Alabama, has total income equal to $68,000. His income includes $65.000 from his salary and $3,000 in interest. If he uses the standard deduction, how much would he owe in state income taxes? What is Billy Ray marginal tax rate? What is Billy Ray effective tax rate? What types of changes to the structure of the tax could be made to make the state income tax more progressive? Explain