A nation has a tax rate of 20% on the first $20,000 of taxable income, 30% on the next $30,000, 40% on the next $20,000 and then 50% on all taxable income above $70,000.
a. Find the ATR of someone with a taxable income of $100,000.
b. How much is a tax credit of $1000 worth to someone with a taxable income of $40,000?
c. How much is a tax credit of $1000 worth to someone with a taxable income of $60,000?
d. How much would a $1000 deduction be worth to someone with a taxable income of $40,000?
e. How much would a $1000 deduction be worth to someone with a taxable income of $60,000?