Suppose the tax rate on the first $10,000 of income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on income over $60,000. Family A has an income of $55,000. What is the tax
liability of Family A?
A) $16,500
B) $6,600
C) $7,500
D) $3,400
Answer: C
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