Imagine a friend says that he doesn't want to take a job that pays slightly more money only because he will be bumped into the next tax bracket and end up taking home less income after taxes.how would you advise this friend?
Define marginal tax rates. Then, explain why tax rates in the United States were designed to be marginal.
In the Unit 2 lecture and in the Unit 3 lesson on taxes, you learned that Texas has a tax system that is generally Ac€A?regressiveAc€?? because it relies heavily on sales taxes rather than income taxes. What are the definitions of regressive, flat, and progressive when it comes to taxes? Why is a sales tax considered a regressive tax? Should Texas adopt an income tax to make the tax system less regressive? Why or why not?