Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Chapter 4, Problem 2DTM
Summary Introduction
To identify: Marginal tax rates for a single person.
Introduction: Marginal Income tax: It is the percentage of the total tax payable with the total taxable income of an organization. Marginal tax rate gives an overall idea about the tax percentage in an industry. It helps in taking various financial decisions.
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What would be the marginal tax rate for a single person who has the following taxable income?
1. $35,310
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Suppose that the income tax in a certain nationis computed as a flat rate of 5 percent, but notax is levied above $50,000 in taxable income.Taxable income, in turn, is computed as theindividual's income minus $10,000; that is,everyone gets a $10,000 deduction. What arethe marginal and average tax rates for each ofthe following three workers? (Evaluate the mar-ginal tax rate at each person's current incomelevel.)a.A part-time worker with annual income of$9,000.b.A retail salesperson with annual income of$45,000.C.An advertising executive with annual incomeof $600,000.Is the tax progressive, proportional, or regres-sive with respect to income?
What would be the average tax rate for a person who paid taxes of $6,435 on a taxable income of $40,780? (Enter your answer as a percent rounded to 2 decimal places.)
Chapter 4 Solutions
Personal Finance (MindTap Course List)
Ch. 4.1 - Prob. 1CCCh. 4.1 - Prob. 2CCCh. 4.1 - Explain why some taxpayers have an effective...Ch. 4.2 - Prob. 1CCCh. 4.2 - Prob. 2CCCh. 4.2 - Prob. 3CCCh. 4.2 - Prob. 4CCCh. 4.2 - Prob. 5CCCh. 4.2 - Prob. 6CCCh. 4.2 - Prob. 7CC
Ch. 4.3 - Distinguish between two major types of...Ch. 4.3 - Prob. 2CCCh. 4.3 - Prob. 3CCCh. 4.3 - Prob. 4CCCh. 4 - Calculate Tax Liability. What would be the tax...Ch. 4 - Prob. 2DTMCh. 4 - Determine Tax Liability. Find the tax Liabilities...Ch. 4 - Use Tax Rate Schedule. Jared Goff, of Los Angeles,...Ch. 4 - Use Tax Rate Schedule. Carson Wentz, of...Ch. 4 - Review Figure 4-1 on page 117 and comment on the...Ch. 4 - The Johnsons Calculate Their Income Taxes Several...Ch. 4 - Prob. 2FPCCh. 4 - Prob. 3FPCCh. 4 - Prob. 4FPCCh. 4 - Taxable Versus Tax-Exempt Bonds Paxton Lynch,...Ch. 4 - Prob. 6FPCCh. 4 - Prob. 3BYOPFM
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