Suppose in Fiscalville there is a 0 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 45 percent.
If your income is $50,000, how much will you pay in taxes?
The marginal tax rate is ___
The average tax rate is ___
Is this a progressive tax?