1. High incoime family. Income before tax: $500,000 tax rate 37% taxes paid $185,000 after tax income $315,000. 2. Middle income family. Income before tax: $50,000. tax rate 20% taxes paid 10,000 after tax income $40,000 3. Low income family. Income before tax: $20,000 tax rate 10% taxes paid $2,000 after tax income $18,000 Using the table, what is the ratio of a high-income family's income to a low-income family's income before and after taxes?
1. High incoime family. Income before tax: $500,000 tax rate 37% taxes paid $185,000 after tax income $315,000. 2. Middle income family. Income before tax: $50,000. tax rate 20% taxes paid 10,000 after tax income $40,000 3. Low income family. Income before tax: $20,000 tax rate 10% taxes paid $2,000 after tax income $18,000 Using the table, what is the ratio of a high-income family's income to a low-income family's income before and after taxes?
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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1. High incoime family. Income before tax: $500,000 tax rate 37% taxes paid $185,000 after tax income $315,000.
2. Middle income family. Income before tax: $50,000. tax rate 20% taxes paid 10,000 after tax income $40,000
3. Low income family. Income before tax: $20,000 tax rate 10% taxes paid $2,000 after tax income $18,000
Using the table, what is the ratio of a high-income family's income to a low-income family's income before and after taxes?
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