Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, rangesfrom $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay intotal taxes?Instructions: Enter your answer as a whole number. Suppose that Carson earns $80,000 per year but must pay income taxes according to the tax schedule as shown below.IncomeTax Rate (%)$0 to $7,00010$7,001 to $33,00015$33,001 to $75,00025$75,001 to $142,00030$142,001 and above40Instructions: Round your answers to the nearest whole number.a. According to this table, what type of income tax does Carson face?Progressive tax vb. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay?2$What is Carson's marginal tax rate?percentWhat is his average tax rate?percent

a) Income = $50000 Tax rates are:- 5% for income ranges from $0 to $25000 25% for income ranges from…

Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number.

Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $25,000. The second tax bracket, which taxes at 25 percent, ranges from $25,001 to $100,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

The social security tax is 6.2 on employees income earned below 113,000. Is this tax progressive, regressive or proportional?
Suppose you are a typical person in the U.S. economy. You pay 4 percent of yourincome in a state income tax and 15.3 percent of your labor earnings in federal payrolltaxes (employer and employee shares combined). You also pay federal income taxes asin Table 2. How much tax of each type do you pay if you earn $30,000 a year? Taking alltaxes into account, what are your average and marginal tax rates? What happens toyour tax bill and to your average and marginal tax rates if your income rises to$60,000?
Why is the burden of a tax to taxpayers greater thanthe revenue received by the government?
What are the types of income chargeable to tax in Australia?
Suppose that your state raises its sales taxfrom 5 percent to 6 percent. The state revenuecommissioner forecasts a 20 percent increase insales tax revenue. Is this plausible? Explain.
What is retrospective tax?
Suppose you earn $40,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $20,000. The second tax bracket, which taxes at 25 percent, ranges from $20,001 to $80,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number. 2$
What are the three distinct terms to describe taxes?
Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue commissionerlo~asts a 20 percent increase in sales tax revenue.Is this plausible? Explain.
What is the importance of taxation
What is the benefit of having state and local taxes on income instead of collecting all such taxes at the federal level? What is the local tax in your county/city? Make sure to state the county/city and the tax rate. How does this compared to the tax rate of neighboring counties/cities? How do you feel about this? Does the location with the higher tax rate receive better amenities (schools, police, road conditions? Would you rather pay a higher tax for better service?
why is the tax rate 6?