Quesiton: (Tax Rates)Suppose taxes are related to income as follows:
|
Income
|
Taxes
|
|
$1,000
|
$200
|
|
$2,000
|
$350
|
|
$3,000
|
$450
|
1. What percentage of income is paid in taxes at each level?
2. Is the tax rate progressive, proportional, or regressive?
3. What is the marginal tax rate on the first $1,000 of income? The second $1,000? The third $1,000?