Suppose Cameron earns $80,000 per year but must pay income taxes according to th

Question

Suppose Cameron earns $80,000 per year but must pay income taxes according to the tax schedule given in the table to the right. According to the? chart, the income tax Cameron faces is a progressive tax.

Assume Cameron has no tax exemptions or deductions. How much in income taxes must Cameron? pay?

Cameron must pay ?$17,850 in income taxes. ?(Enter your response as a whole? number.)

Assume Cameron has no tax exemptions or deductions. What is his marginal tax? rate? What is his average tax? rate?

?Cameron's marginal tax rate is ______%

and his average tax rate is _____?%.

?(Enter your responses as whole? numbers.)

Income Tax Rate? (%) ?$0 to $ 5 comma 000$5,000 10 $ 5 comma 001$5,001 to $ 26 comma 000$26,000 15 $ 26 comma 001$26,001 to $ 66 comma 000$66,000 25 $ 66 comma 001$66,001 to $ 141 comma 000$141,000 30 $ 141 comma 001$141,001 and up 40

Explanation / Answer

Tax paid = 5000*10% + 21000*15% + 40000*25% + 14000*30%

Tax paid = $17850

Marginal tax rate = 30%

Average tax rate = 17850/80000 = 22.31% or 22 (%)

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