Suppose the tax amount on the first $10,000 income is $0; $2000 on the next $20,000; $4000 on the next $20,000; $6000 on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $30,000 and Family B has income of $80,000. What is the marginal and average tax rate for each family? A.Family A: marginal10 percent; average20 percent; Family B: marginal30 percent; average23 percent. B.Family A: marginal10 percent; average15 percent; Family B: marginal40 percent; average20 percent. C.Family A: marginal10 percent; average6.7 percent; Family B: marginal30 percent; average15 percent. D.Family A: marginal10 percent; average10 percent; Family B: marginal40 percent; average40 percent
Suppose the tax amount on the first $10,000 income is $0; $2000 on the next $20,000; $4000 on the next $20,000; $6000 on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $30,000 and Family B has income of $80,000. What is the marginal and average tax rate for each family?
A.Family A: marginal10 percent; average20 percent; Family B: marginal30 percent; average23 percent.
B.Family A: marginal10 percent; average15 percent; Family B: marginal40 percent; average20 percent.
C.Family A: marginal10 percent; average6.7 percent; Family B: marginal30 percent; average15 percent.
D.Family A: marginal10 percent; average10 percent; Family B: marginal40 percent; average40 percent
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