Homework Help: Economics

Posted by Sally on Monday, November 13, 2006 at 1:30am.

The marginal tax rate is defined as the extra taxes paid on additional income divided by the increase in income. Calculate the marginal tax rate for the proportional tax system as income rises from $50,000 to $100,000. Calculate the marginal tax rate as income rises from $100,000 to $200,000. Calculate the corresponding marginal tax rates for the regressive and progressive tax systems.

I believe that the answers are 25% for both the income rises from $50,000 to $100,000 and from $100,000 to $200,000 for the proportional tax system.

Your question is incomplete. You have not informed what amount of tax in the cases you have cited. Please inform the amount of taxes and you will get yor answer shotly.

Income

No one has answered this question yet.

Answer this Question

Related Questions

Economics - The marginal tax rate is defined as the extra taxes paid on ...
economics - Suppose the income tax rate schedule is 0 percent on the first $10,...
ECONOMICS - Suppose you are a typical person in the U.S. economy. You pay 4 ...
Economics - Suppose that a family's tax liability equaled its income ...
Macroeconomic - 1. An example of an automatic stabilizer is A. a temporary tax ...
macroeconomice - Will marginal propensity to spend (d) will be low if, ...
Macroeconomic - 1)An example of an automatic stabilizer is A. a temporary tax ...
tax - In which of the following situations would a taxpayer be better off to ...
Income Tax - Accounting. Help Me Please. - Tax Rates, latesha, a single taxpayer...
ACC 233-INCOME TAX - Tax Rates, latesha, a single taxpayer, had the following ...

For Further Reading

First Name:
School Subject:
Answer: