Given the following hypothetical U.S. Federal income tax brackets and marginal tax rates for single persons for 2011:
|
Taxable Income
|
Marginal Tax Rates
|
|
0 - $20,000
|
5%
|
|
$20,000 - 60,000
|
10%
|
|
$60,000 - 200,000
|
20%
|
|
Over $200,000
|
30%
|
Compute the total tax due AND the average tax rate (ATR) for a single person with taxable income in 2011 (show your calculations!) of
1. $5,000
2. $50,000
3. $500,000
4. Which tax structure is this, based on your values of ATR?