Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income tax bracket.Laura is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to deemthe wedding worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places.IncomeTax rate$0-$10,0005%$10,001-$30,00010%20%$30,001-$50,000$50,001+50%What is the marginal tax rate associated with taking on this wedding?50What is Laura's average tax rate if the extra wedding is accepted?0.1636

1) Marginal tax rate = 50%Laura was earning a basic salary of $50,000 as an event planner and when…

Answered: Laura earns a base salary of $50,000 as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

If older workers have a tax elasticity of labor supply equal to 0.25, by how much will their work activity decline when they reach the Social Security earnings test limit? (Recall that the Social Security earnings test limit is 50 percent. Assume explicit taxes of 20 percent below that limit. Use the midpoint method.) Instructions: Enter your response as a positive percent rounded to one decimal place. Do not include a negative sign (-) with your answer.
As of 2016, social insurance tax on a typical worker’s income is calculated as ___ of the worker’s pretax paycheck amount. Only ____ of that amount is actually deducted from the worker’s paycheck. The other ____ is paid by the employer. Self-employed individuals, however, must pay the full ____ themselves. For Social Security, though not for Medicare, the amount of income taxed is capped. The cap for 2016 is ____. Answer Choices: 5.1% 7.65% 10.2% 15.3% $118,000 $125 $133 700 900
A compulsary legal and unilateral payment made to the government is known as _______
The country of Aquilonia has a tax system identical to that of Canada. Suppose an Aquilonian bought a parcel of land for $10,000 in 1960 when the price index equalled 100. In 2019, the person sold the land for $100,000, and the price index equalled 500. If the person must pay 20 percent of any capital gain in taxes, what is the after-tax real capital gain (in 2019 dollars) on the land? $72,000 $32,000 O $6400 O $62,000
Consider the first three columns of the following table, which outline a hypothetical Negative Income Tax plan. Complete the last column of the table. Family Income Negative Tax Positive Tax Total After-Tax Income 50 $20,000 50 S 5,000 $15,000 0 S 10,000 $10,000 S 15,000 $5,000 0 20,000 0 0 S 25,000 0 -$5,000 30,000 35,000 OO -$10,000 S -$15,000
Roberto Clemente's marginal federal income tax rate is 20%. How much money will Roberto save in federal income taxes if he deposits the $13,675 in a tax-deferred retirement account instead of depositing it in a taxable account? Taxes round to the dollar
What is the effect of a tax on interest income?
What makes the Earned Income Tax Credit (EITC) different from other poverty-fighting programs? The amount of the credit is doubled if the head of household is attending college. The tax credit is phased out gradually, rather than at a specific income cutoff point. The amount of the credit is not determined by the number of dependent children in the household. The EITC doesn't require the recipient to pay a minimum amount of income tax in order to receive the credit. It creates less of an incentive to work than other programs.
Assume that the government proposes a negative income tax that calculates taxes owed using the following formula: taxes owed = 0.25 Income $20,000. If a family earns an income of $60,000, how does this tax scheme affect them? they receive a subsidy of $5000 they pay $15,000 in taxes they pay $20,000 in taxes they receive an income subsidy of $15,000.
John works from 7am to 4pm 5 days a week, he does not receive overtime He gets an hour unpaid lunch During the year john gets paid for : 10 holiday days, 10 sick days, 14 vacation days, 5 personal days John is paid $20 an hour Johns weekly federal income tax deduction is $65, social security tax is .062 of his gross wage, medicare tax is .008 of his gross pay, and state tax is $25 per week What would John's gross and net pay be for the year ending December 31st, 2021?
People who are self-employed are required to pay taxes on -- a weekly basis a quarterly basis a yearly basis a monthly basis

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