Answered: of 30000$ The income tax in the country…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1-Consider the three following households: Household A with an income of 12000$ Household B with an income of 15000$ Household C with an income of 30000$ The income tax in the country X is proportional and equals 2% The income tax in the country Y is as follows: The households who are paid under 15000$ would pay a tax of 10% and those above 15000% would pay a tax of 20% The income tax in the country Z is regressive. Households A, B and C would pay 10% or 20% or 30%.

Calculate the income tax for the three households in each country.

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