Calculate the average tax rate and marginal tax rate that


Larry earns $25,000 and pays $2,500 in tax, while Suzy earns $50,000 and pays $15,000 in tax. If Larry's income increases by $100, his tax increases by $12, but if Suzy's income increases by $100, her tax increases by $35. Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Calculate the average tax rate and marginal tax rate that
Reference No:- TGS01701140

Expected delivery within 24 Hours