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Suppose Governor Meridias Decides to Initiate a State Income Tax

Question 151

Multiple Choice

Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.A household earning $50,000 has a marginal tax rate of _____% and a tax rate of _____%.


A) 10;10
B) 10;0
C) 0;0
D) 0;10

Correct Answer:

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