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(a) Calculate the marginal and average tax rates at the following income levels:
(i) £3000 (ii) £9,000
(iii) £12,000 (iv) £20,000
(b) Is the tax progressive or regressive?
Suppose the tax structure is revised so that income over £5000 is taxed at 30% as before, but the rate increases to 50% for income over £10,000.
(c) Calculate the marginal and average tax rates as before (in part (a)).
(d) Is the tax more or less progressive than before?
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