Suppose that the payroll tax for unemployment insurance


Suppose that the payroll tax for unemployment insurance taxes all wages up to $90,000 per worker at a flat rate of 5%. What are the marginal and average tax rates on wages for each of the following workers?

a. A restaurant worker with annual wages of $30,000?

b. An assistant bank manager with wages of $100,000?

c. A corporate CEO with an annual salary of $500,000?

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Financial Accounting: Suppose that the payroll tax for unemployment insurance
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