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$30,000 are taxed at a 10% rate. If you earn a $100,00 in income:

A. What is your average tax rate? ______
B. What is your marginal tax rate?______

Please show me how you got this cuz im sooo confused : )

2007-10-21 16:19:30 · 1 answers · asked by justanobservation-notajudgement 3 in Social Science Economics

1 answers

total tax = .20*30000+.10(100000-30000)=6000+7000=13000
average tax =13000/100000=.13 or 13%
marginal tax =10% or tax on additional dollar earned

2007-10-22 03:22:14 · answer #1 · answered by meg 7 · 0 0

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