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(Tax Rates) Suppose taxes are related to income level as follows:
Income Taxes
$1,000 $200
$2,000 $350
$3,000 $450
a. What percentage of income is paid in taxes at each level?
b. Is the tax rate progressive, proportional, or regressive?
c. What is the marginal tax rate on the first $1,000 of income? The second $1,000? The third $1,000?
d. How do you calculate the above problem?
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