Please double check if my answers to this question are correct. 7. Problems and Applications Q2 Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table On Taxable Income... From $0 to $9,075 The Tax Rate Is... 10.0% From $9,076 to $36,900 15.0% From $36,901 to $89,350 25.0% From $89,351 to $185,350 78.0% From $186,351 to $405,100 33.0% From $405,101 to $406,750 35.0% From $406,751 and above 39.6% Complete the following table with how much tax of each type you pay if you earn $30,000 a year (Note: Tonove any credits or deductions of one tax type on other tax liabilities.) Tax Type Amount (Dollars) State Income Tax 1.200 00 Federal Payroll Tax Federal Income Tax 4.590.00 4.046 25 Taking all taxes into account, your average tax rate is 32.8% and your marginal tax rate is 15% Complete the following table with how much tax of each type you pay if you earn $60,000 a year Tax Type State Income Tex Federal Payroll Tax Federal Income Tax Amount (Dollars) 2.400.00 9.180 00 10.86376 Taking all taxes into account, your average tax rate is 27.4% and your marginal tax rate is 25% in this case
Please double check if my answers to this question are correct. 7. Problems and Applications Q2 Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table On Taxable Income... From $0 to $9,075 The Tax Rate Is... 10.0% From $9,076 to $36,900 15.0% From $36,901 to $89,350 25.0% From $89,351 to $185,350 78.0% From $186,351 to $405,100 33.0% From $405,101 to $406,750 35.0% From $406,751 and above 39.6% Complete the following table with how much tax of each type you pay if you earn $30,000 a year (Note: Tonove any credits or deductions of one tax type on other tax liabilities.) Tax Type Amount (Dollars) State Income Tax 1.200 00 Federal Payroll Tax Federal Income Tax 4.590.00 4.046 25 Taking all taxes into account, your average tax rate is 32.8% and your marginal tax rate is 15% Complete the following table with how much tax of each type you pay if you earn $60,000 a year Tax Type State Income Tex Federal Payroll Tax Federal Income Tax Amount (Dollars) 2.400.00 9.180 00 10.86376 Taking all taxes into account, your average tax rate is 27.4% and your marginal tax rate is 25% in this case
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Please double check if my answers to this
question are correct.
7. Problems and Applications Q2
Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings
in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table
On Taxable Income...
From $0 to $9,075
The Tax Rate Is...
10.0%
From $9,076 to $36,900
15.0%
From $36,901 to $89,350
25.0%
From $89,351 to $185,350
78.0%
From $186,351 to $405,100
33.0%
From $405,101 to $406,750
35.0%
From $406,751 and above
39.6%
Complete the following table with how much tax of each type you pay if you earn $30,000 a year (Note: Tonove any credits or deductions of one tax
type on other tax liabilities.)
Tax Type
Amount
(Dollars)
State Income Tax
1.200 00
Federal Payroll Tax
Federal Income Tax
4.590.00
4.046 25
Taking all taxes into account, your average tax rate is 32.8% and your marginal tax rate is 15%
Complete the following table with how much tax of each type you pay if you earn $60,000 a year
Tax Type
State Income Tex
Federal Payroll Tax
Federal Income Tax
Amount
(Dollars)
2.400.00
9.180 00
10.86376
Taking all taxes into account, your average tax rate is 27.4% and your marginal tax rate is 25% in this case
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education