ledzepfan1
Apr 13, 2009, 09:15 PM
How do you calculate a marginal tax rate if all you get are these stats:
Suppose taxes are related to income level as follows:
INCOME / TAXES
$1,000 / $200
$2,000 / $350
$3,000 / $450
What is the marginal tax rate on the first $1,000 of income? The second? The third?
I got the percentages of each tax level, and that it is a regressive tax, but I'm not sure how to calculate the marginal tax rate... with the information given...
I found the answers on a website, but I want to know how to do it, in case it's on the test...
Suppose taxes are related to income level as follows:
INCOME / TAXES
$1,000 / $200
$2,000 / $350
$3,000 / $450
What is the marginal tax rate on the first $1,000 of income? The second? The third?
I got the percentages of each tax level, and that it is a regressive tax, but I'm not sure how to calculate the marginal tax rate... with the information given...
I found the answers on a website, but I want to know how to do it, in case it's on the test...