Thursday
April 24, 2014

Homework Help: economics

Posted by Margary on Tuesday, June 23, 2009 at 8:47pm.

Suppose the income tax rate schedule is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on any income over $70,000. Family A earns $28,000 a year and Family B earns $65,000 a year. Both receive a ten percent raise. What is the marginal tax rate of each and what is the extra tax paid by each after the raise?


A. Family A: 20 percent marginal tax rate and $560 in extra taxes. Family B: 40 percent marginal tax rate and $2600 in extra taxes.

B. Family A: 20 percent marginal tax rate and $360 in extra taxes; Family B: 40 percent marginal tax rate and $2100 in extra taxes.

C. Family A: 15 percent marginal tax rate and $420 in extra taxes; Family B: 35 percent marginal tax rate and $2275 in extra taxes.

D. Family A: 10 percent marginal tax rate and $280 in extra taxes; Family B: 30 percent marginal tax rate and $1950 in extra taxes.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

finance - 4. a. Someone in the 36 percent tax bracket can earn 9 percent ...
economics - income total spending $10,000 $10,000 20,000 18,000 50,000 35,000 ...
business math - The GDP of Company E was $500 million in 1995. The population ...
Economics - Suppose that the Government runs a pension fund to which all workers...
Finance - Your company sponsors a 401(k) plan into which you deposit 12 percent ...
ECONOMICS - Suppose you are a typical person in the U.S. economy. You pay 4 ...
Finance - Chipís Home Brew Whiskey management forecasts that if the firm sells ...
finance 571 - Chipís Home Brew Whiskey management forecasts that if the firm ...
Finance - Your firm is considering the following three alternative bank loans ...
Finance - Firm A has $20,000 in assets entirely financed with equity. Firm B ...

Search
Members