Calculate the familys marginal and average tax rates

Assignment Help Business Law and Ethics

Reference no: EM131199065

The nation of Fishkasar has a tax rate of 10% on the first 20,000 walops (the national currency) of taxable income, then 25% on the next 30,000 walops, then 50% on all taxable income above 50,000 walops. Fishkasar provides a 4,000-walop exemption per family member.

a. Jamil's family has three members and earns 50,000 walops per year. Calculate the family's marginal and average tax rates.

b. Boba's family has five members and earns 85,000 walops per year. Calculate the family's marginal and average tax rates.

c. Suppose that Fishkasar changed its tax code to a flat tax of 30% with an 8,000-walop per family member exemption. Would this change in the tax system make the system more progressive, more regressive, or neither?

Reference no: EM131199065

Questions Cloud

Withdraw funds from the account : She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and sti..

How does point c with trade compare to point a without trade : Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely specializes in cashew nuts. How many bushels of cashew nuts can T..

Explain the strategies adopted by your chosen company : Explain the strategies adopted by your chosen company towards regulatory compliance and how this is documented in the company's policies and or through its website.

Traditional core markets of usd and eur : 1. Why are interest rates so low in the traditional core markets of USD and EUR? 2. What makes this "emerging market carry trade" so different from traditional forms of uncovered interest arbitrage?

Calculate the familys marginal and average tax rates : Jamil's family has three members and earns 50,000 walops per year.- Calculate the family's marginal and average tax rates.

Create a brochure for prevention and treatment : How the issue affects physical, cognitive and socioemotional development, Prevention strategies Intervention strategies and Specific resources that provide additional information about this issue: name, contact information, and websites.

Use the principle of diminishing returns : When to Use the Principle of Diminishing Returns? You are the manager of a firm that produces memory chips for mobile phones.

Why a state respond to its neighbors change in generosity : Several recent studies have documented a "race to the bottom" in welfare benefit levels,- Why might a state respond to its neighbors' change in generosity?

Which of the following situations describes an equilibrium : Every student enrolled in Economics 101 must also attend a weekly tutorial. This year there are two sections offered: section A and section B, which meet at the same time in adjoining classrooms and are taught by equally competent instructors. Sec..

User Account

All Pages