Song earns 171000 taxable income as an interior designer

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Song earns $171,000 taxable income as an interior designer and is taxed at an average rate of 28 percent (i.e., $47,880 of tax).

 

a.If Congress increases the income tax rate such that Song's average tax rate increases from 28 percent to 33 percent, how much more income tax will she pay assuming that the income effect is descriptive?(Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13567504

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