Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table. Income range Tax rate $0-$20,000 0% $20,001–$39,000 31% 42% $39,001-$70,000 $70,001+ 50% Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your answer to the nearest whole number. Lee family Income = $123,000 Average tax rate: 60 Marginal tax rate: 50

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter20: Poverty, Inequality, And Discrimination
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Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table.
Income range
Tax rate
$0-$20,000
0%
$20,001–$39,000
31%
42%
$39,001-$70,000
$70,001+
50%
Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your
answer to the nearest whole number.
Transcribed Image Text:Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table. Income range Tax rate $0-$20,000 0% $20,001–$39,000 31% 42% $39,001-$70,000 $70,001+ 50% Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your answer to the nearest whole number.
Lee family
Income = $123,000
Average tax rate:
60
Marginal tax rate:
50
Transcribed Image Text:Lee family Income = $123,000 Average tax rate: 60 Marginal tax rate: 50
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