Problem
Table 20P-2 shows an income tax schedule for the imaginary country of Independence. Connor is a citizen of Independence who earns $95,000 per year at his job. Assume Connor is not eligible for any deductions or exemptions.
a. How much does Connor pay in income tax?
b. What is Connor's marginal tax rate? What is his overall tax rate?
c. Connor isn't crazy about his job and wants to move to a job in a related industry that pays $100,000. How much will Connor have to pay in taxes in the new job?
d. Is the income tax in Independence regressive, proportional, or progressive?
