KEY QUESTION Suppose in Fiscalville there is no tax on the first $10,000 of income, but a

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KEY QUESTION Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. If your income is

$50,000, how much will you pay in taxes? Determine your marginal and average tax rates. Is this a progressive tax?

Explain.

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Economics

ISBN: 9780073336947

17th Edition

Authors: Campbell McConnell , Stanley Brue

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