Using the data in the table below, respond to the following questions.
$$\begin{array} { | l | l | l | l | }
\hline \text { Income } & \text { Taxes } & \begin{array} { l }
\text { Average tax rate } \
( \% )
\end{array} & \begin{array} { l }
\text { Marginal tax rate } \
( \% )
\end{array} \
\hline \$ 0 & \$ 0 & 0 & 0 \
\hline 10,000 & 1,100 & & \
\hline 15,000 & 2,100 & & \
\hline 25,000 & 4,000 & & \
\hline 30,000 & 5,000 & & \
\hline 35,000 & 6,000 & & \
\hline 45,000 & 7,000 & & \
\hline 50,000 & 8,400 & & \
\hline 55,000 & 11,500 & & \
\hline 65,000 & 15,000 & & \
\hline 75,000 & 18,900 & & \
\hline 85,000 & 23,200 & & \
\hline 95,000 & 27,900 & & \
\hline 105,000 & 33,000 & & \
\hline
\end{array}$$
a. Complete the table by calculating the average and marginal tax rates.
b. Taxes are regressive over what range of income?
c. What range of income exhibits proportional tax rates?
d. To what range of income are progressive tax rates applied?

Question

Using the data in the table below, respond to the following questions.
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Income } & \text { Taxes } & \begin{array} { l } 
\text { Average tax rate } \
( \% )
\end{array} & \begin{array} { l } 
\text { Marginal tax rate } \
( \% )
\end{array} \
\hline \$ 0 & \$ 0 & 0 & 0 \
\hline 10,000 & 1,100 & & \
\hline 15,000 & 2,100 & & \
\hline 25,000 & 4,000 & & \
\hline 30,000 & 5,000 & & \
\hline 35,000 & 6,000 & & \
\hline 45,000 & 7,000 & & \
\hline 50,000 & 8,400 & & \
\hline 55,000 & 11,500 & & \
\hline 65,000 & 15,000 & & \
\hline 75,000 & 18,900 & & \
\hline 85,000 & 23,200 & & \
\hline 95,000 & 27,900 & & \
\hline 105,000 & 33,000 & & \
\hline
\end{array}$$ 
a. Complete the table by calculating the average and marginal tax rates.
b. Taxes are regressive over what range of income?
c. What range of income exhibits proportional tax rates?
d. To what range of income are progressive tax rates applied?

Quizplus · Accepted Answer

The Answer is

\begin{array} { | l | l | l | l | } \hline \text { Income } & \text { Taxes } & \begin{array} { l } \text { Average tax rate } \( \% )\end{array} & \begin{array} { l } \text { Marginal tax rate } \( \% )\end{array} \\hline \$ 0 & \$ 0 & 0 & 0 \\hline 10,000 & 2,100 & 21.0 & 21.0 \\hline 15,000 & 4,000 & 26.7 & 38.0 \\hline 25,000 & 5,000 & 20.0 & 10.0 \\hline 30,000 & 6,000 & 20.0 & 20.0 \\hline 35,000 & 7,000 & 20.0 & 20.0 \\hline 45,000 & 8,400 & 18.7 & 14.0 \\hline 50,000 & 11,500 & 23.0 & 62.0 \\hline 55,000 & 15,000 & 27.3 & 70.0 \\hline 65,000 & 18,900 & 29.1 & 39.0 \\hline 75,000 & 23,200 & 30.9 & 43.0 \\hline 85,000 & 27,900 & 32.8 & 47.0 \\hline 95,000 & 33,000 & 34.7 & 51.0 \\hline 105,000 & 40,000 & 38.1 & 70.0 \\hline\end{array}

b. $35,000-$45,000
c. $25,000-35,000
d. $10,000-$15,000 and $50,000-$105,000

Using the Data in the Table Below, Respond to the Following