Econ Public Finance, please help!
a.
Taxable income = income - exemption = 60000 - 3 * 5000 = 45000
Marginal tax rate = 20%
Tax = 5% * 20000 + 20% * (45000 - 20000)
= 0.05 * 20000 + 0.20 * 25000
= 6000
Avg tax rate = Tax / Total income * 100 = 6000 / 60000 * 100 = 10%
b.
Taxable income = income - exemption = 100000 - 5 * 5000 = 75000
Marginal tax rate = 50%
Tax = 5% * 20000 + 20% * 30000 + 50% *(75000 - 50000)
= 0.05 * 20000 + 0.20 * 30000 + 0.50 * 25000
= 19500
Avg tax rate = Tax / Total income * 100 = 19500 / 100000 * 100 = 19.5%
Econ Public Finance, please help! Question 2 (10 pts) The nation of Fishkasar has a tax rate of 5% on the first 20,000...
] Archenland has the following tax schedule: the first $20,000 of income is taxed at a rate of 10%; the next $30,000 is taxed at a rate of 25%; beyond this, any additional income is taxed at a rate of 50%. Archenland allows a $4000 exemption per family member. a] Corin’s family has three members and earns $50,000 per year. Calculate the family’s marginal and average tax rates. b] Peter’s family has five members and earns $85,000 per year. Calculate...
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2013 Individual Tax Rates Single Individuals Average Tax Rate at Top of Bracket 10.0% 13.8 If a Corporation's Taxable Income Is Up to $8,925 $8,925 - $36,250 $36,250 - $87,850 $87,850 - $183,250 $183,250 - $398,350 $398,350 - $400,000 Over $400,000 It Pays This Amount on the Base of the Bracket $0 892.50 4,991.25 17,891.25 44,603.25 115,586.25 116,163.75 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 20.4 24.3 29.0 29.0...
help please
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