The table below shows an income tax schedule for the imaginary country of Indepe

Question

The table below shows an income tax schedule for the imaginary country of Independence. Connor is a citizen of Independence who earns $91,000 per year at his job. Assume Connor is not eligible for any deductions or exemptions.

Instructions: Round your answers to one decimal place.

a. Connor pays $__ in income tax.

b. Connor’s marginal tax rate is__ %.

    Connor's overall tax rate is __%.

c. Connor isn’t crazy about his job and wants to move to a job in a related industry that pays $100,000.

    With his new job, Connor will have to pay $__ in taxes.

d. The income tax in Independence is (Click to select)proportionalprogressiveregressive.

Taxable income Marginal tax
rate (%) $0$5,000 5 $5,001$15,000 7 $15,001$30,000 9 $30,001$50,000 11 $50,001$75,000 13 $75,001$100,000 15 $100,001$130,000 20 $130,001$175,000 21 $175,001+ 22

Explanation / Answer

a. total tax he is paying as per summing up- $10150 as income is $ 91000

b. marginal tax rate is 15% and overall tax rate is 11.15%= 10150/91000

c. If his income is 100000 then the tax wil go up to $11500 p.a. as per calcultaion. pls find the slab wise calcultaion as below,

d. The income tax is progressive as it increases with increase in income.

250 700 1350 2200 3250 3750 Total 11500

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