Calculate the average tax rate and marginal tax rate

Reference no: EM131298440

Larry earns $25,000 and pays $2,500 in tax, while Suzy earns $50,000 and pays $15,000 in tax. If Larry's income increases by $100, his tax increases by $12, but if Suzy's income increases by $100, her tax increases by $35. Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.

Reference no: EM131298440

Questions Cloud

What is overall response from the receptor being activated : How does the receptor get activated? What happens next once this receptor is activated (i.e. downstream signaling)? What is the overall response from this receptor being activated?

Does temperature affect growth of mold or is the difference : Does temperature affect the growth of mold or is the difference in mold growth related to differences between the bread and the rolls?

Which country has a comparative advantage in producing shoes : Which country has a comparative advantage in producing shoes? With international trade, explain which country would export shoes and how the price of shoes in the importing country and the quantity produced by the importing country would change. E..

Suppose the dollar depreciates relative to the euro : Suppose the dollar depreciates relative to the euro. How would this affect the sales revenue of German manufacturer BMW in the Untied States and why?

Calculate the average tax rate and marginal tax rate : Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.

Is raising federal gasoline tax the best way to fund highway : Would a tax per mile driven be more efficient or less efficient than a tax per gallon of gasoline? Explain your answer.

Attraction and fun of the game : Golfing can be an enjoyable and rewarding way to spend your time. Despite the attraction and fun of the game there can be many challenges. One of the more common challenges for experienced players is waiting for slower players to finish a hole b..

Draw a graph to illustrate the u.s. rose market : Draw a graph to illustrate the U.S. rose market with free international trade. On your graph, mark the price of roses and the quantities of roses bought, produced, and imported into the United States

User Account

All Pages