The Australian government wants to create a new income tax that collects 10% for all incomes between $10000 and $50000; 15% for income between $50001 and $100000; and 20% for incomes above $100000. What is the difference in the average tax rate (ATR) for one worker earning $75000 and the other $45000? What about the difference in the marginal tax rate (MTR) between them? O ATR difference 2.6%, MTR difference 5% ATR difference 5.0%, MTR difference 5% O ATR difference 7.8%, MTR difference 10% O ATR difference 10.3%, MTR difference 10% O None of the other options
The Australian government wants to create a new income tax that collects 10% for all incomes between $10000 and $50000; 15% for income between $50001 and $100000; and 20% for incomes above $100000. What is the difference in the average tax rate (ATR) for one worker earning $75000 and the other $45000? What about the difference in the marginal tax rate (MTR) between them? O ATR difference 2.6%, MTR difference 5% ATR difference 5.0%, MTR difference 5% O ATR difference 7.8%, MTR difference 10% O ATR difference 10.3%, MTR difference 10% O None of the other options
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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