John faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000,10 percent on the next $10,000,15 percent on the next $10,000,25 percent on the next $10,000,and 40 percent on all additional income.If John earns $50,000 per year,what would be his tax liability
A)$8000
B)$9000
C)$16,000
D)$25,000

Question

Quizplus · Accepted Answer

John's tax liability is calculated by applying the marginal tax rates to each portion of his income: $0 on the first $10,000, $1,000 on the next $10,000 (10%), $1,500 on the next $10,000 (15%), $2,500 on the next $10,000 (25%), and $4,000 on the remaining $10,000 (40%). Total tax liability is $0 + $1,000 + $1,500 + $2,500 + $4,000 = $9,000.

John Faces a Progressive Tax Structure That Has the Following