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A proposed state income would require individuals with income of $15,000 or less to pay no tax, and those with income above $15,000 to pay a tax of 10 percent only on part of their income tax that exceeds $15,000.
a. could an individual pay an average tax rate of 7.5 percent under this system?
b. could an individual pay an average tax rate of 10 percent under this system?
c what average and marginal tax rates would individuals with these income levels face: $10,000, $20,000, $40,000 , $150,000
Explain each of your answers and provide examples to justify your conclusions |
