Suppose the government taxes 30 percent of the first $70,000 and 50 percent of all income above $70,000 . For a person earning $100,000 . the marginal tax rate is
a. 30 percent, and the average tax rate is 50 percent.
b. 30 percent, and the average tax rate is 36 percent.
c. 50 percent, and the average tax rate is 40 percent.
d. 50 percent, and the average tax rate is 36 percent.
d
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A good for which demand decreases when income decreases is known as a(n) ________ good
A) normal B) inferior C) complementary D) substitute
In an open shop no one is forced to ___________.
Fill in the blank(s) with the appropriate word(s).
A theory of fairness that holds that taxpayers should contribute to the government in ________ the benefits they receive from public expenditures is the benefits-received principle.
A. a greater proportion than B. proportion to C. a smaller proportion than D. The benefits-received principle does not equate taxpayer contributions to the government and benefits received from public expenditure.
The interest rate charged by the Fed to member banks is called the _____
Fill in the blank(s) with correct word