Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent of all income over $50,000. Calculate the marginal tax rate and the average tax rate for a person who earns $70,000.

Sagot :

The marginal tax rate and the average tax rate for a person who earns $70,000 will be  $1,443 per month.

Marginal tax rate

The marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned. A 10 percent marginal tax rate means that 10 cents of every next dollar earned would be taken as tax.

Average tax rate

A taxpayer's average tax rate (or effective tax rate) is the share of income that they pay in taxes. By contrast, a taxpayer's marginal tax rate is the tax rate imposed on their last dollar of income. Taxpayers' average tax rates are lower — usually much lower — than their marginal rates.

Learn more about marginal tax rate and average tax rate here :

https://brainly.com/question/10798743

#SPJ4

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.