BIOSC 0150 Lecture Notes - Lecture 12: Tax Rate, Progressive Tax, Retained Earnings
29 Aug 2016
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Suppose a person"s total taxes paid are related to total income as follows i. ii. What is the marginal tax rate on income between 30,000 and 50,000 i. ii. iii. So the answer is 35% because the tax rate on the highest dollar taxed is. Also this is a progressive tax system because as you increase in income s marginal tax rate. You are entitled to interest income and retained earnings (if any) i. False, it is partially true, the retained earnings is what the company keeps you b. You are entitled to dividends and you own part of the corporation i. False, these are characteristics of stockholders not a bond owner. c. Other things equal, your bond will decrease in value if interest rates in the economy decline i. False, because as interest rates decline the value of your bond will increase no d.
