Exam 12: The Design of the Tax System.

James earns income of $90,000 per year.His average tax rate is 40%.James paid $5,500 in taxes on the first $40,000 he earned.What was the marginal tax rate on the rest of his income?

Table 12-7 -Refer to Table 12-7.What is the average tax rate for a person who makes $120,000?

Table 12-9 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-9.For this tax schedule,what is the total income tax due for an individual with $49,000 in taxable income?

If a tax takes a smaller fraction of income as income rises,it is

Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000.What is the average tax rate when income is $50,000?

Many economists believe that the U.S.tax system would be made more efficient if the basis of taxation were changed so that people paid taxes,more so than they do now,based on

In which of the following tax systems do taxes increase as income increases?

The principle that people should pay taxes based on the benefits they receive from government services is called the

A tax on all forms of income will

Which of the following contributes to the projected rise in government spending on Social Security and Medicare as a percentage of GDP?

Table 12-14 -Refer to Table 12-14.A lump-sum tax is illustrated by tax

Individual income taxes and social insurance taxes generate the highest tax revenue for the federal government.

Like spending on Social Security,the share of federal government spending on Medicare has risen substantially over time.This is most likely a result of

The average American pays a higher percent of his income in taxes today than he would have in the late 18th century.

Table 12-9 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-9.For this tax schedule,what is the average tax rate for an individual with $280,000 in taxable income?

Pat calculates that for every extra dollar she earns,she owes the government 40 cents.Her total income now is $44,000,on which she pays taxes of $11,000.Determine her average tax rate and her marginal tax rate.

Table 12-1 -Refer to Table 12-1.If Agatha has $80,000 in taxable income,her tax liability is

If the rich pay more in taxes than the poor,the tax system must be progressive.

The theory that the wealthy should contribute more to police protection than the poor because they have more to protect is based on

Table 12-12 United States Income Tax Rates for a Single Individual, 2009 and 2010. -Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What is his marginal tax rate in 2010?