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

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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
Transcribed Image Text: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
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