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28 Sep 2019
Any income tax schedule embodies two types of tax rates: averagetax rates and marginal tax rates.
b. The marginal tax rate is defined as the extra taxes paid onadditional income divided by the increase in income. Calculate themarginal tax rate for the proportional tax system as income risesfrom $50,000 to $100,000. Calculate the marginal tax rate as incomerises from $100,000 to $200,000. Calculate the correspondingmarginal tax rates for the regressive and progressive taxsystems.
c. Describe the relationship between average tax rates and marginaltax rates for each of these three systems. In general, which rateis relevant for someone deciding whether to accept a job that paysslightly more than her current job? Which rate is relevant forjudging the vertical equity of a tax system?
Any income tax schedule embodies two types of tax rates: averagetax rates and marginal tax rates.
b. The marginal tax rate is defined as the extra taxes paid onadditional income divided by the increase in income. Calculate themarginal tax rate for the proportional tax system as income risesfrom $50,000 to $100,000. Calculate the marginal tax rate as incomerises from $100,000 to $200,000. Calculate the correspondingmarginal tax rates for the regressive and progressive taxsystems.
c. Describe the relationship between average tax rates and marginaltax rates for each of these three systems. In general, which rateis relevant for someone deciding whether to accept a job that paysslightly more than her current job? Which rate is relevant forjudging the vertical equity of a tax system?
b. The marginal tax rate is defined as the extra taxes paid onadditional income divided by the increase in income. Calculate themarginal tax rate for the proportional tax system as income risesfrom $50,000 to $100,000. Calculate the marginal tax rate as incomerises from $100,000 to $200,000. Calculate the correspondingmarginal tax rates for the regressive and progressive taxsystems.
c. Describe the relationship between average tax rates and marginaltax rates for each of these three systems. In general, which rateis relevant for someone deciding whether to accept a job that paysslightly more than her current job? Which rate is relevant forjudging the vertical equity of a tax system?
Retselisitsoe PokothoaneLv10
28 Sep 2019
