ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
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Question
Chapter 2, Problem 9P
To determine
(a)
To calculate the ratio of income of a high-income family and low-income family before taxes.
To determine
(b)
To calculate the ratio income of high-income families to low-income families after taxes.
To determine
(c)
To analyze whether the tax is progressive.
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Students have asked these similar questions
The government implements a negative income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for
payments of 50%.
Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income
above $10,600 would pay a positive tax.)
Family Income
(Dollars)
Negative Tax Total After-Tax Income
(Dollars)
(Dollars)
0
2,600
4,600
6,600
8,600
10,600
I need the other side of the chart for regressive tax
Using the information provided on the income tax
systems in two hypothetical countries, Country A and
Country B, complete the following tables.Country
ACountry BTaxable Income (Dollars) Tax Liability (Dollars)
Taxable Income(Dollars) Tax Liability (Dollars
)20,0002,000.0020, 000$2,00040, 00010, 000.0040,000
$4,00060,00024,000.0060, 000$6,000Complete 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)(Percent)(Percent) 20,000 to 40,00040,000 to
60,000Complete the following table by deriving the
average tax rates at each income level for each
country.Taxable Income (Dollars)(Percent) Country A
Average Tax Rate Country B Average Tax Rate(Percent
)20,00040, 00060,000
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