Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 20, Problem 3RQ
To determine
Which among the options is an example of regressive taxation .
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Suppose in Fiscal illegal there is a 0 percent tax on the first 10,000 of income, but there is a 20% tax on earnings between $10,000 and $20,000 and a 30% tax on income $20,000 and $30,000. Any income above $30,000 is taxed at 40%.
If your income is $70,000, how much will you pay in taxes?
Determine your average tax rate?
The nation of Upstandia uses kroner for money and its tax code is such that a person making 100,000 kroner per year pays 40,000 kroner per year in income taxes; a person making 200,000 kroner per year pays 70,000 kroner per year in income taxes; and a person making 300,000 kroner per year pays 90,000 kroner per year in income taxes. Upstandia’s income tax system is: a. Progressive. b. Regressive. c. Proportional.
2)
In 2015, a country's progressive income tax rates were 15% on the first $25,000,
18% on the next $35,000, 20% on the next $45,000, and 25% on any additional income. If your
gross taxable earnings for the year were $150,000, calculate the total income tax that you paid.
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