Essentials of Economics - Standalone book
10th Edition
ISBN: 9781259235702
Author: Bradley R Schiller, Karen Gebhardt
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 9P
To determine
(a)
To calculate: the ratio of a high-income family’s income to low income family’s income before taxes.
To determine
(b)
To calculate: the ratio of a high-income family’s income to low income family’s income 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 $10,800 would pay a positive tax.)
Family Income Negative Tax
(Dollars)
(Dollars)
0
2,800
4,800
6,800
8,800
10,800
Total After-Tax Income
(Dollars)
Federal income tax is (a. progressive b. proportionate (flat) c. regressive) , Social Security tax is (a. progressive b. proportionate (flat) c. regressive ) , Medicare tax is (a. progressive b. proportionate (flat) c. regressive) and sales tax is (a. progressive b. proportionate (flat) c. regressive) when comparing an income of $50,000 per year to an income of $150,000 per year.
Daniela had a gross income of $91,369 in 2010. What was her net income in 2010?
Use the income tax table below to answer the question.
2010 Federal Income Tax Brackets and Tax Rates (Canada)
Tax Brackets
Tax Rates
15% of taxable income less than or
equal to $40,970; plus
22% of taxable income greater
$40,970 to $81,941 than $40,970 and less than or
equal to $81,941; plus
$40,970 or less
26% of taxable income greater
$81,941 to $127,021 than $81,941 and less than or equal
to $127,021; plus
More than $127,021
29% of taxable income greater
than $127,021
Chapter 2 Solutions
Essentials of Economics - Standalone book
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Similar questions
- Use the information in the table to answer the following question. Income Amount of % of Income Tax $25,000 $6,750 25% $50,000 $10,000 20% $100,000 $15,000 15% Which kind of tax does the data in the table represent?arrow_forwardBased on the following data: Taxable income ($) Total tax ($) 1500 5 2500 110 3000 200 4500 400 5000 600 6000 900 Please answer the next questions. 1. What kind of tax is illustrated, i.e, structural, perverse, proportional or progressive. Explain. 2. If your taxable income is $5000, what is your average tax rate? 3. If your taxable income increases from $5000 to $6000, what is your marginal tax rate?arrow_forwardUse the data below to answer the following questions. Family Income Tax rate A $10000 20% B $50,000 4% C $100,000 2% Prepare a line graph to show a regressive tax or a progressive tax on different income groups. b. Analyse the tax structure chosen using the results from the graph.arrow_forward
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