Suppose Janet is a single parent with one child, and she is trying to determine the effect of transfer benefits and taxes on her implicit marginal tax rate (and thus her incentive to work). The following table shows the transfer benefits and income taxes at various income levels in the economy in which Janet resides. Compute the spendable income level Janet would have at each level of earned income and enter these values in the last column of the table. Earned Income from Work (Dollars) Transfer Benefits (Dollars) Income and Employment Taxes Spendable Income (Dollars) 0 9.954 6.000 8.800 12.000 7.389 18,000 5.384 24.000 30,000 2.697 1.033 0 272 772 1,424 2.225 2.656 (Dollars) 9.954 If Janet's income from work increased from $18.000 to $24.000, her implicit marginal tax rate would be If Janet's income from work increased from $24.000 to $30.000, her implicit marginal tax rate would be

Suppose Janet is a single parent with one child, and she is trying to determine the effect of transfer benefits and taxes on her implicit marginal tax rate (and thus her incentive to work). The following table shows the transfer benefits and income taxes at various income levels in the economy in which Janet resides. Compute the spendable income level Janet would have at each level of earned income and enter these values in the last column of the table. Earned Income from Work (Dollars) Transfer Benefits (Dollars) Income and Employment Taxes Spendable Income (Dollars) 0 9.954 6.000 8.800 12.000 7.389 18,000 5.384 24.000 30,000 2.697 1.033 0 272 772 1,424 2.225 2.656 (Dollars) 9.954 If Janet's income from work increased from $18.000 to $24.000, her implicit marginal tax rate would be If Janet's income from work increased from $24.000 to $30.000, her implicit marginal tax rate would be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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