Schedule for the imaginary country of independence

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Reference no: EM131449398

The table below shows an income tax schedule for the imaginary country of Independence. Connor is a citizen of Independence who earns $95,000 per year at his job. Assume Connor is not eligible for any deductions or exemptions.

Taxable income Marginal tax
rate (%)
$0-$5,000  5
$5,001-$15,000  7
$15,001-$30,000  9
$30,001-$50,000 11
$50,001-$75,000 13
$75,001-$100,000 15
$100,001-$130,000 20
$130,001-$175,000 21
$175,001+ 22

Instructions: Round your answers to one decimal place.

a. Connor pays $ in income tax.

b. Connor's marginal tax rate is %.

Connor's average tax rate is %.

c. Connor isn't crazy about his job and wants to move to a job in a related industry that pays $100,000.

With his new job, Connor will have to pay $ in taxes.

d. The income tax in Independence is

Reference no: EM131449398

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