Homework Help: ECONOMICS

Posted by Anonymous on Thursday, April 22, 2010 at 1:30pm.

Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined).
You also pay federal income taxes as in Table 3. How much tax of each type do you pay if you earn $20,000 a year?
Taking all taxes into account, what are your average and marginal tax rates?
What happens to your tax bill and to your average and marginal tax rates if your income rises to $40,000?

No one has answered this question yet.

Answer this Question

Related Questions

MicroEconomics - You are a typical person in the US economy. You pay 4 percent ...
economics - suppose the income elasticity of demand for toys is +2.00. this ...
Economics - Suppose that the Government runs a pension fund to which all workers...
Economics - Suppose that the Government runs a pension fund to which all workers...
public finance - A worker lives in a state that has its own income tax. The ...
Public Finance - A worker lives in a state that has its own income tax. The ...
economics - why might one person work more, earn more, and pay more income tax ...
12grade economics - suppose that your state raises its sales tax from 5 percent ...
algebra - In a certain state, people with an income under $15K pay a minimum ...
economics - Suppose that the consumption function is C=100+.8(y-t). Initially ...

For Further Reading

First Name:
School Subject:
Answer: