Suppose that the federal income tax on individuals is set up as follows:
Income above Income below Taxes
0 $8000 0.10 × income
$8000 $35,000 $800 + [0.15 × (income - $8000)]
$35,000 & up $4850 + [0.25 × (income - $35,000)]
Calculate the average tax rate and marginal tax rate for workers with the following levels of income:
(a)$6500
(b)$27,000
(c)$72,000
(d)$250,000

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The Answer of Suppose that the federal income tax on individuals is set up as follows:
Income above Income below Taxes
0 $8000 0.10 × income
$8000 $35,000 $800 + [0.15 × (income - $8000)]
$35,000 & up $4850 + [0.25 × (income - $35,000)]
Calculate the average tax rate and marginal tax rate for workers with the following levels of income:
(a)$6500
(b)$27,000
(c)$72,000
(d)$250,000

Suppose That the Federal Income Tax on Individuals Is Set