Suppose in Fiscalville there is a O percent tax on the first $10,000 of income, but there is a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. Instructions: Round your answers to the nearest whole number. a. If your income is $70,000, how much will you pay in taxes? 2$ b. Determine your marginal tax rate. percent c. Determine your average tax rate. percent d. Is Fiscalville's income tax progressive? (Click to select)
Suppose in Fiscalville there is a O percent tax on the first $10,000 of income, but there is a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. Instructions: Round your answers to the nearest whole number. a. If your income is $70,000, how much will you pay in taxes? 2$ b. Determine your marginal tax rate. percent c. Determine your average tax rate. percent d. Is Fiscalville's income tax progressive? (Click to select)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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