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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 28DQ

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Question

Let's assume you live in a country with a progressive tax system that has the following tax brackets:
• 0% on income up to $10,000
• 10% on income between $10,001 and $50,000
• 20% on income between $50,001 and $100,000
• 30% on income above $100,000
Suppose your annual income is $75,000. How much tax do you pay?
a. $10,000
b.
C.
d.
$7500
$8500
$9000

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