Business, 01.03.2021 22:40 poreally1446
Suppose the tax amount on the first $10,000 income is $0; $2,000 on the next $20,000; $4,000 on the next $20,000; $6,000 on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $30,000 and Family B has income of $80,000. What is the marginal and average tax rate for each family? A. Family A: marginal—10 percent; average—10 percent; Family B: marginal—40 percent; average—40 percent. B. Family A: marginal—10 percent; average—6.7 percent; Family B: marginal—20 percent; average—15 percent. C. Family A: marginal—10 percent; average—15 percent; Family B: marginal—40 percent; average—20 percent. D. Family A: marginal—10 percent; average—20 percent; Family B: marginal—30 percent; average—23 percent.
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Suppose the tax amount on the first $10,000 income is $0; $2,000 on the next $20,000; $4,000 on t...
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