Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number.
Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
Problem 4PA
Related questions
Question
![Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges
from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in
total taxes?
Instructions: Enter your answer as a whole number.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c33e07c-8694-4e34-ac4f-8e0baded1561%2F9260a3e0-bff0-45c9-8f96-9c828ade1a71%2Fik8nu2_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges
from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in
total taxes?
Instructions: Enter your answer as a whole number.
![Suppose that Carson earns $80,000 per year but must pay income taxes according to the tax schedule as shown below.
Income
Tax Rate (%)
$0 to $7,000
10
$7,001 to $33,000
15
$33,001 to $75,000
25
$75,001 to $142,000
30
$142,001 and above
40
Instructions: Round your answers to the nearest whole number.
a. According to this table, what type of income tax does Carson face?
Progressive tax v
b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay?
2$
What is Carson's marginal tax rate?
percent
What is his average tax rate?
percent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c33e07c-8694-4e34-ac4f-8e0baded1561%2F9260a3e0-bff0-45c9-8f96-9c828ade1a71%2Fbu24p2gb_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that Carson earns $80,000 per year but must pay income taxes according to the tax schedule as shown below.
Income
Tax Rate (%)
$0 to $7,000
10
$7,001 to $33,000
15
$33,001 to $75,000
25
$75,001 to $142,000
30
$142,001 and above
40
Instructions: Round your answers to the nearest whole number.
a. According to this table, what type of income tax does Carson face?
Progressive tax v
b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay?
2$
What is Carson's marginal tax rate?
percent
What is his average tax rate?
percent
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971493/9781305971493_smallCoverImage.gif)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971493/9781305971493_smallCoverImage.gif)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Macroeconomics](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![ECON MACRO](https://www.bartleby.com/isbn_cover_images/9781337000529/9781337000529_smallCoverImage.gif)