41.The U.S. federal income tax is classified as a
42.To make a tax system more progressive, policy makers could A. Raise marginal tax rates for higher incomes.B. Narrow the tax base.C. Allow all interest expenses to be deductible, not just interest on mortgages.D. Raise sales taxes on commonly purchased items.
43.If the marginal tax rate is too high, it can cause all of the following except
44.Government attempts to create a more equitable income distribution by increasing marginal tax rates may do all of the following except
45.In general, lower marginal tax rates provide incentives to
46.If an individual is taxed at a 17 percent rate for each extra dollar earned, the reference is to the A. Marginal tax rate.B. Nominal tax rate.C. Average tax rate.D. Effective tax rate.
47.Assume the marginal tax rate is 12 percent for the first $40,000 of income, 28 percent for income between $40,000 and $100,000, and 30 percent for any income over $100,000. If Sarah has taxable income equal to $120,000 for the year, what is her tax bill?