(Solved) Last year, Anthony Millanti earned exactly $30,000 of taxable income. Assume that the income tax ...

Question 1.

Suppose, on average, a family in Church Falls earning $60,000 per year paid 6 percent of its income in state taxes. A family earning $80,000 paid, on average, $4,760 in state income taxes. Are state taxes in Church Falls progressive or regressive? Be sure to explain the difference between a progressive tax and a regressive tax.

Question 2.

Last year, Anthony Millanti earned exactly $30,000 of taxable income. Assume that the income tax system used to determine Anthony's tax liability is progressive. The table below lists the tax brackets and the marginal tax rates that apply to each bracket.

a.	Draw a new table that lists the amounts of income tax that Anthony is obligated to pay for each

tax bracket, and the total tax he owes the government. (Assume that there are no allowable tax deductions, tax credits, personal exemptions, or any other deductions that Anthony can use to reduce his tax liability).

b.	Determine Anthony's average tax rate.

Tax Bracket	Marginal Tax Rate
$0-5,000	0.05 (5%)
5,001-10,000	0.10 (10%)
10,001-15,000	0.15 (15%)
15,001-20,000	0.20 (20%)
20,001-25,000	0.25 (25%)
25,001-30,000	0.30 (30%)

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Last year, Anthony Millanti earned exactly $30,000 of taxable income. Assume that the income tax ...

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