Economics: Marginal Tax Rate?

Question

The marginal tax rate is defined as the extra taxes paid on additional income divided by the increase in income. Calculate the marginal tax rate for the proportional tax system as income rises from $50,000 to $100,000. Calculate the marginal tax rate as income rises from $100,000 to $200,000. Calculate the corresponding marginal tax rates for the regressive and progressive tax systems.

I believe that the answers are 25% for both the income rises from $50,000 to $100,000 and from $100,000 to $200,000 for the proportional tax system.


(Income/Average tax rate proportional tax system):($50,000/ 25%),($100,000/25%),($200,000/25%)



(Income/Average tax rate regressive tax system) : ($50,000/ 30%),($100,000/25%),($200,000/20%)


(Income/Average tax rate progressive tax system): ($50,000/ 20%),($100,000/25%),($200,000/30%)

Answer 1

Of course for the first one it's all 25%

BTW, I can't see the 200k percentage.

I can only comment on the 50k-100k rate.
For the second, the marginal rate is actually 20 %

For the third, the marginal rate is actually 30 %

Answer 2

You figure it out - you just got taxed $1000 more on $4000 more income. Duh. You need to do about 60 more of these problems, because if you didn't get that from basic 8th grade math, you're gonna be toast in college if you don't get some practice.