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10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Taxable Income Tax Liability Taxable Income Tax Liability (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) (Dollars) 20,000 $2.000 40,000 10,000.00 40,000 $4,000 60,000 24,000.00 60,000 $6.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) 20,000 to 40,000 (Percent) (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000

10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Taxable Income Tax Liability Taxable Income Tax Liability (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) (Dollars) 20,000 $2.000 40,000 10,000.00 40,000 $4,000 60,000 24,000.00 60,000 $6.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) 20,000 to 40,000 (Percent) (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
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10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Taxable Income Tax Liability Taxable Income Tax Liability (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) (Dollars) 20,000 $2.000 40,000 10,000.00 40,000 $4,000 60,000 24,000.00 60,000 $6.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) 20,000 to 40,000 (Percent) (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000
Transcribed Image Text:10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Taxable Income Tax Liability Taxable Income Tax Liability (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) (Dollars) 20,000 $2.000 40,000 10,000.00 40,000 $4,000 60,000 24,000.00 60,000 $6.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Dollars) 20,000 to 40,000 (Percent) (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20,000 40,000 60,000
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