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Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) (Percent) (Percent) 20,000 to 40,000 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000

Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) (Percent) (Percent) 20,000 to 40,000 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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i need help with this question 8 from my microeconmics assigments. i have already gotten it wrong twice.

### 10. Understanding Marginal and Average Tax Rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. #### Country A and Country B Income Tax Data | | **Country A** | | **Country B** | | |----------------|---------------|----------------|---------------|----------------| | **Taxable Income (Dollars)** | **Tax Liability (Dollars)** | **Taxable Income (Dollars)** | **Tax Liability (Dollars)** | | 20,000 | 1,000.00 | 20,000 | 6,000 | | 40,000 | 8,000.00 | 40,000 | 10,000 | | 60,000 | 24,000.00 | 60,000 | 12,000 | #### Marginal Tax Rates Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. | **Taxable Income Range (Dollars)** | **Country A Marginal Tax Rate (Percent)** | **Country B Marginal Tax Rate (Percent)** | |------------------------------------|------------------------------------------|------------------------------------------| | 20,000 to 40,000 | | | | 40,000 to 60,000 | | | #### Average Tax Rates Complete the following table by deriving the average tax rates at each income level for each country. | **Taxable Income (Dollars)** | **Country A Average Tax Rate (Percent)** | **Country B Average Tax Rate (Percent)** | |------------------------------|-----------------------------------------|-----------------------------------------| | 20,000 | | | | 40,000 | | | | 60,000 | | |
Transcribed Image Text:### 10. Understanding Marginal and Average Tax Rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. #### Country A and Country B Income Tax Data | | **Country A** | | **Country B** | | |----------------|---------------|----------------|---------------|----------------| | **Taxable Income (Dollars)** | **Tax Liability (Dollars)** | **Taxable Income (Dollars)** | **Tax Liability (Dollars)** | | 20,000 | 1,000.00 | 20,000 | 6,000 | | 40,000 | 8,000.00 | 40,000 | 10,000 | | 60,000 | 24,000.00 | 60,000 | 12,000 | #### Marginal Tax Rates Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. | **Taxable Income Range (Dollars)** | **Country A Marginal Tax Rate (Percent)** | **Country B Marginal Tax Rate (Percent)** | |------------------------------------|------------------------------------------|------------------------------------------| | 20,000 to 40,000 | | | | 40,000 to 60,000 | | | #### Average Tax Rates Complete the following table by deriving the average tax rates at each income level for each country. | **Taxable Income (Dollars)** | **Country A Average Tax Rate (Percent)** | **Country B Average Tax Rate (Percent)** | |------------------------------|-----------------------------------------|-----------------------------------------| | 20,000 | | | | 40,000 | | | | 60,000 | | |
### Income Tax Systems by Country #### Instructions: Complete the following table by indicating whether each country has a progressive, proportional, or regressive income tax system. | | Progressive | Proportional | Regressive | |---------------|-------------|--------------|------------| | **Country A** | 〇 | 〇 | 〇 | | **Country B** | 〇 | 〇 | 〇 | #### Explanation: - **Progressive Tax System**: A tax system where the tax rate increases as the taxable amount increases. Higher income earners pay a higher percentage of their income in taxes. - **Proportional Tax System (Flat Tax)**: A tax system where the tax rate is constant regardless of the amount of income. Everyone pays the same percentage of their income in taxes. - **Regressive Tax System**: A tax system where the tax rate decreases as the taxable amount increases. Higher income earners pay a lower percentage of their income in taxes compared to lower income earners.
Transcribed Image Text:### Income Tax Systems by Country #### Instructions: Complete the following table by indicating whether each country has a progressive, proportional, or regressive income tax system. | | Progressive | Proportional | Regressive | |---------------|-------------|--------------|------------| | **Country A** | 〇 | 〇 | 〇 | | **Country B** | 〇 | 〇 | 〇 | #### Explanation: - **Progressive Tax System**: A tax system where the tax rate increases as the taxable amount increases. Higher income earners pay a higher percentage of their income in taxes. - **Proportional Tax System (Flat Tax)**: A tax system where the tax rate is constant regardless of the amount of income. Everyone pays the same percentage of their income in taxes. - **Regressive Tax System**: A tax system where the tax rate decreases as the taxable amount increases. Higher income earners pay a lower percentage of their income in taxes compared to lower income earners.
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