Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table.Income rangeTax rate$0-$20,0000%$20,001–$39,00031%42%$39,001-$70,000$70,001+50%Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round youranswer to the nearest whole number. Lee familyIncome = $123,000Average tax rate:60Marginal tax rate:50

Under progressive tax system higher income people pay higher taxes. Average tax rate is used to…

Answered: Suppose that a nation decides to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the simplified 2018 tax table, determine the income tax owed for a single person who has $143904 of taxable income. Marginal Tax Rate Filing Single On Taxable Income 10% First $9,525 12% 22% 24% $9,525 $38,700 $38,700 $82,500 $82,500 $157,500 32% 35% 37% $157,500 $200,000 $200,000 $500,000 Over $500,000 Find the marginal tax amount for each of the brackets 10% 952.50 12% 22% 24% Total Tax
Find the missing values for [ a ] through [ j ] below. [ j ] Which tax structure above is progressive? Which tax structure above is regressive?
If you earn $130,0000, what is the marginal tax rate? Taxable income ($) $0-$50,000 Tax (%) 7% 5.84% 6% 05% 5% $50,001-$100,000 $100,001-$200,000 6% 7%
12. Study Questions and Problems #12 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 $0 $10,000 $0 S 5,000 $7,500 0 S 10,000 $5,000 0 S 15,000 $2,500 0 S 20,000 0 0 S 25,000 0 -$2,500 S 30,000 -$5,000 S 35,000 -$7,500 S
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
A retailer buys a bicycle from the wholesaler at $140 and the wholesaler charges a sales tax at the prescribed rate of 9%. The retailer fixes the price at $12 and charges sales tax at the same rate. Apply value added tax system of sales tax calculation to answer the following questions. (i) What is the price that a consumer has to pay to buy the bicycle? (ii) Find the input tax and output tax for the retailer. (iii) How much VAT does the retailer pay to the government?
8
Income Percent of Income Paid in Tax Total amount of Tax Paid Family A $10,000 20% $2,000 Family B $50,000 4% $2,000 Family C $100,000 2% $2,000 If all families had to pay a $2,000 tax to fund schools, which type of tax structure is this school tax? O Regressive Tax O Proportional Tax O Progressive Tax
16. Fill in the missing values in the following table. Income Tax Average tax $ rate (%) $ 20,000 2,000 30,000 2,700 40,000 3.200 50,000 3,500 Marginal tax rate (%)
Please answer questions (a), (b) and (c) if possible. Thank you.
Tyoed plz and Asap thanks
Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 20% $2,000 A Family $50,000 4% $2,000 В Family $100,000 2% $2,000 C If all families had to pay a $2,000 tax to fund schools, which type of tax structure is this school tax? Regressive Tax Proportional Tax Progressive Tax

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