average tax (1 Viewer)

[ToO LaZy ^*]

how do you calculate ART ? (average rate of tax)

 

[Rorix]

uh, exactly how it sounds?

seriously people, eco things just aren't named at random! average rate of tax really is the AVERAGE RATE OF TAX!

(i.e. total tax payed/total income)

 

[ToO LaZy ^*]

ok i'll just give you the question..

income ($) tax rate(%)
0-6000 nil
6001-20000 17
20001-50000 30
50001-60000 42
above 60000 47

calculate the average rate of taxation for a person earning 50 000

 

[ToO LaZy ^*]

also another question.

what is structural budget surplus?

 

[Rorix]

ok i'll just give you the question..

income ($) tax rate(%)
0-6000 nil
6001-20000 17
20001-50000 30
50001-60000 42
above 60000 47

calculate the average rate of taxation for a person earning 50 000

work out how much tax is paid..., 13999 * .17 + 29999*.3 = T
ART = T/50000


structural budget surplus i imagine would be the surplus on the structual component of the budget, never heard the term before but it i doubt it could be anything else

 

[ToO LaZy ^*]

work out how much tax is paid..., 13999 * .17 + 29999*.3 = T
ART = T/50000

how did you get those figures????

 

[Rorix]

Because under the tax bracket system, the income from 6001-20000 is taxed at 17% and the income from 20001-50000 is taxed at 30%
so he pays 17% of the 13999 and 29999 of the 30% as tax

 

[ToO LaZy ^*]

sorry for being stupid..but how did you get the figures 13999 and 29999 specifically?. -____-"

edit: ok..look's like you've minused 6001 from 20000 and 20000 from 50001...
but why do you have to pay taxes for both brackets?

 

[Rorix]

because the tax system is progressive, you pay a higher marginal rate in the higher brackets

 

[ToO LaZy ^*]

ah ok.
cheers =)