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Suppose the tax amount on the first \$10,000 income is \$0; \$2000 on the next \$20,000; \$4000 on the next \$20,000; \$6000 on the next \$30,000; and 40...

Suppose the tax amount on the first \$10,000 income is \$0; \$2000 on the next \$20,000; \$4000 on the next \$20,000; \$6000 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?
 Family A: marginal10 percent; average10 percent; Family B: marginal40 percent; average40 percent. Family A: marginal10 percent; average15 percent; Family B: marginal40 percent; average20 percent. Family A: marginal10 percent; average20 percent; Family B: marginal30 percent; average23 percent. Family A: marginal10 percent; average6.7 percent; Family B: marginal30 percent; average15 percent.

Family A: marginal10 percent;... View the full answer

A: \$2,000 tax is from \$10,000 to \$30,000, so A's marginal tax rate is 10 percent. Average tax rate is tax liability /... View the full answer

A: \$2,000 tax is from \$10,000 to \$30,000, so A's marginal tax rate is 10 percent. Average tax rate is tax liability /... View the full answer

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