how to mesure vertical equity

Question

Question

Answer 1

Answer #1

Suppose Sam earns 100,000 dollars in US then his vertical equity is calculated based on progressive taxbrackets.

First 8025 dollars at 10%= 802. 5

Nezt 24525 dollars at 15%= 3678.75

Nezt 49100 dollars at 25%=12275.00

Final 18350 dollars at 28%= 5138.00

Thus total tax calculation = 21, 894 dollars which is 21.89 percent effective income tax or vertixal equity.

Answer 2

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