Question

Back to Assignment Attempts: 24 Keep the Highest: 2.473 3. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Taxable Income Tax Liability (Dollars) (Dollars) 20,000 1,000.00 40,000 8,000.00 60,000 24,000.00 Country B Taxable Income Tax Liability (Dollars) (Dollars) 20,000 $6,000 40,000 $10,000 60,000 $12,000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country Country A Marginal Tax Rate (Percent) Country B Marginal Tax Rate (Percent) Taxable Income Range (Dollars) 20,000 to 40,000 40,000 to 60,000 como

Answer 1

Tanable Country B Country A Income 20,000 to 40000 sooo - 1000 xloo 40000-20000 2 35% 1000o- 6000 x100 40000 - 20000 2 20% 40000 to 60000 24000 - 8000 60000 - 40000 2 80% no 12000 - 10000 oloo v60000 40000 2 10% Tanabe Income country A Country B 20,000 1ooo xloo 20000 6000 7800 2oooo 2 30% 2 5% 8000 x 100 20000 x 100 40.000 400000 2 20% 40000 2 25% 1 2000 m foo 60,000 60000 24000 xloo 6oooo 2 40% 2 20%

СХе Country A Progressive As the fast rate is increasing as income land is increasing Country B Regressive As the face sate is decreasing as income level increasing