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Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 35 percent.
Instructions: Round your answers to the nearest whole number.
a. If your income is $50,000, how much will you pay in taxes? $.
b. Determine your marginal tax rate. percent.
c. Determine your average tax rate. percent.
d. Is this a progressive tax?
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