14. Marginal Tax Rate Versus Average Tax Rate Maria is 34 years old, single, and lives in Durham. In 2017, her income was £37,100, while the personal allowance was £11,000. The table below shows the HM Revenue and Customs tax rates for a taxpayer under the age of 65 in 2016-2017: Taxable Income £11,000 Tax Rate 0% From £11,000 to £32,000 20% From £32,401 to £150,000 40% Over £150,000 45% Based on the table, Maria paid. in taxes, and her average tax rate was Suppose that instead of using a complicated marginal tax schedule, the government imposed a lump-sum tax of £5,100 on Maria's entire income. As a result, her average tax rate would be Which statement best describes Maria's situation? Her average tax rate is less than her marginal tax bracket. Her entire income of £37,100 is taxed at 40%. Her marginal tax bracket is the same as her average tax rate.

14. Marginal Tax Rate Versus Average Tax Rate Maria is 34 years old, single, and lives in Durham. In 2017, her income was £37,100, while the personal allowance was £11,000. The table below shows the HM Revenue and Customs tax rates for a taxpayer under the age of 65 in 2016-2017: Taxable Income £11,000 Tax Rate 0% From £11,000 to £32,000 20% From £32,401 to £150,000 40% Over £150,000 45% Based on the table, Maria paid. in taxes, and her average tax rate was Suppose that instead of using a complicated marginal tax schedule, the government imposed a lump-sum tax of £5,100 on Maria's entire income. As a result, her average tax rate would be Which statement best describes Maria's situation? Her average tax rate is less than her marginal tax bracket. Her entire income of £37,100 is taxed at 40%. Her marginal tax bracket is the same as her average tax rate.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...

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