Below is a marginal tax table from 2010 for a single taxpayer in Springfield, Waylan Smithers. Show all calculations and include a brief explanation of about 50 words.
1.) Suppose Mr. Smithers earned $120,000 in 2010. Using the table above, what would his total tax payment be? What would his average tax rate be? Please round your answer to the nearest 10th of a percent.
2.) Suppose Mindy Simmons earned $75,000 in 2010. Using the table above, what would her total tax payment be? What would her average tax rate be? Please round your answer to the nearest 10th of a percent.
3.) Is this an example of a progressive, regressive, or proportional tax? How do you know?
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If taxable income is over--
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But not over--
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The marginal tax rate for the bracket is:
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$0
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$11,000
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9%
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$11,000
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$43,000
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14%
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$43,000
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$105,000
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24%
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$105,000
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$260,000
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35%
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$260,000
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No limit
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45%
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