ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 3, Problem 3.10P
A
To determine
At each level, the percentage of income that is paid in taxes.
B
To determine
Whether the tax rate is regressive, progressive or proportional.
C
To determine
The marginal tax rate at different levels of income.
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43. - List the main categories of federal revenue and spending and describe the difference between marginal and average tax rates.? Short answer
1-Consider the three following households: Household A with an income of 12000$ Household B with an income of 15000$ Household C with an income of 30000$ The income tax in the country X is proportional and equals 2% The income tax in the country Y is as follows: The households who are paid under 15000$ would pay a tax of 10% and those above 15000% would pay a tax of 20% The income tax in the country Z is regressive. Households A, B and C would pay 10% or 20% or 30%.
Calculate the income tax for the three households in each country.
5
The largest source of government revenues is ________.
Select one:
a. personal income taxes
b. Social Security taxes
c. corporate income taxes
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