question archive The government introduces an income tax with the following tax scale: Marginal tax rate Threshold 0 per cent Up to $10,000 20 per cent From $10,001 to $40,000 40 per cent From $40,001 to $120,000 60 per cent From $120,001     1 Calculate the marginal and average tax rates for the following incomes: 1 $7,000 2 $20,000 3 $45,000 4 $140,000   2 Is the tax system proportional, progressive or regressive? Discuss The government decides to introduce a means tested transfer for low income individuals of $2,000 (the payment is not subject to tax) The payment phases out at a rate of 50 cents for each $1 earned above $43,000     3 After which income level will the payment is no longer available (ie at what income level is the payment completely phased out)?   4 Calculate the (combined) marginal and average tax rates for the following individuals: 1 $7,000 2 $20,000 3 $45,000 4 $140,000 5 Is this tax-transfer system proportional, progressive or regressive?   6 Discuss briefly what impact the low income payment may have on labour supply     7 Discuss the importance of considering both the tax and transfer system when evaluating tax policy?

The government introduces an income tax with the following tax scale: Marginal tax rate Threshold 0 per cent Up to $10,000 20 per cent From $10,001 to $40,000 40 per cent From $40,001 to $120,000 60 per cent From $120,001     1 Calculate the marginal and average tax rates for the following incomes: 1 $7,000 2 $20,000 3 $45,000 4 $140,000   2 Is the tax system proportional, progressive or regressive? Discuss The government decides to introduce a means tested transfer for low income individuals of $2,000 (the payment is not subject to tax) The payment phases out at a rate of 50 cents for each $1 earned above $43,000     3 After which income level will the payment is no longer available (ie at what income level is the payment completely phased out)?   4 Calculate the (combined) marginal and average tax rates for the following individuals: 1 $7,000 2 $20,000 3 $45,000 4 $140,000 5 Is this tax-transfer system proportional, progressive or regressive?   6 Discuss briefly what impact the low income payment may have on labour supply     7 Discuss the importance of considering both the tax and transfer system when evaluating tax policy?

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The government introduces an income tax with the following tax scale:

Marginal tax rate Threshold

0 per cent Up to $10,000

20 per cent From $10,001 to $40,000

40 per cent From $40,001 to $120,000

60 per cent From $120,001

 

 

1 Calculate the marginal and average tax rates for the following incomes:

1 $7,000

2 $20,000

3 $45,000

4 $140,000

 

2 Is the tax system proportional, progressive or regressive? Discuss The government decides to introduce a means tested transfer for low income individuals of $2,000 (the payment is not subject to tax) The payment phases out at a rate of 50 cents for each $1 earned above $43,000

 

 

3 After which income level will the payment is no longer available (ie at what income level is the payment completely phased out)?

 

4 Calculate the (combined) marginal and average tax rates for the following individuals: 1 $7,000 2 $20,000 3 $45,000 4 $140,000 5 Is this tax-transfer system proportional, progressive or regressive?

 

6 Discuss briefly what impact the low income payment may have on labour supply

 

 

7 Discuss the importance of considering both the tax and transfer system when evaluating tax policy?

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