Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000. Family A has income of $100,000 while Family B has income of $40,000. The marginal tax rates faced by the two families are? a. Family A: marginal20 percent; average10 percent; Family B: marginal40 percent; average23 percent. b. Family A: marginal20 percent; average15 percent; Family B: marginal40 percent; average20 percent. c. Family A: marginal10 percent; average10 percent; Family B: marginal30 percent; average30 percent. d. Family A: marginal20 percent; average20 percent; Family B: marginal40 percent; average40 percent.
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
You are manager of a district that has just hired several recent university and college graduates. Most of these people are starting their first full-time job, although most or all have held part-time and summer positions in the past.
Answers (1)
In 2014 Electric Autos had sales of $135 million and assets at the start of the year of $220 million. If its return on start-of-year assets was 10%, what was its operating profit margin? (Do not round intermediate calculations.
Answers (1)
Which of the following statements correctly describes the accounting for bonds that were issued at a discount? The present value of the bonds' future cash flows is greater than the bonds' maturity value.
Answers (1)
The Clayton Act prohibits: a. conspiracies in restraint of trade. b. price discrimination between buyers of like commodities. c. attempts to monopolize. d. all unfair methods of competition.
Answers (1)
When a foreign investor buys a bond either a U. S. firm or the federal government issues, or when a foreign firm builds a factory in the United States, the transaction is recorded in the balance of payments as
Answers (1)
New Questions in Business
Which of the following entities is responsible for all phases of a development project, including screening decisions, developing product specifications, and coordinating product testing? A. Brand Extension Team B. Category Management Committee C.
Answers (1)
Jamir's new job is 25 miles away from his home. What is the most important thing he needs to consider before agrees to a lease?
Answers (1)
If you need to grasp the topic of a document quickly, which strategy can you follow?
Answers (1)
It costs Oriole Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2100 scales at $15 each.
Answers (1)
Reggie is busy trying to prepare a complicated recipe for dinner when his sons come in asking him who can use the computer first. one son, jason, gives a long explanation about why he needs it, and goes on for some time.
Answers (1)