Evaluate marginal tax rate at each persons current income

Assignment Help Finance Basics

Reference no: EM131490559

Question: Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income. Taxable income, in turn, is computed as the individual's income minus $10,000; that is, everyone gets a $10,000 deduction. What are the marginal and avenge tax rates for each of the following three workers? (Evaluate the marginal tax rate at each persons current income level.)

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 income of $600,000. Is the tax progressive, proportional. or mgres-sive with respect to income?

Reference no: EM131490559

Questions Cloud

How much exhaust heat is discharged per hour : If the plant produces electric energy at the rate of 1.3 GW, how much exhaust heat is discharged per hour?

Find the equilibrium price and output as functions : Suppose that the demand curve for a particular commodity is QD = a - bP, where QD is the quantity demanded, P is the price, and a and b are constants.

Explain three differences between dna and rna : Examine three differences between DNA and RNA then explain two main reasons why DNA is the most favorable molecule for genetic material.

Sky diver steps from a hight-flying helicopter : A sky diver steps from a hight-flying helicopter. If there were not air resistance, how fast would she be falling at the end of a 12 second jump?

Evaluate marginal tax rate at each persons current income : Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.

Enhanced sense of hearing versus : What might be the advantages and disadvantages of having an enhanced sense of hearing versus that of sight?

What type of treatment is available for the patient : What type of treatment is available AND what is the outcome/life expectancy for the patient under normal circumstances if treatment is sought?

Write down a formula for the average tax rate as a function : Assume that in a given country, tax revenues, T, depend on income, I, according to the formula T = - 4,000 + 0.21.

What are the applications in daily life : Discuss the characteristics of the fourth state of matter: plasma. What are the applications in your daily life?

User Account

All Pages