Problemthe state of indiana charges a retail sales tax of 7, Ask an Expert

Finance

Problem:

The state of Indiana charges a retail sales tax of 7%. Consider the following information for threehouseholds:

Household 1: Income: 150,000 Consumption: 45,000

Household 2: Income: 80,000 Consumption: 40,000

Household 3: Income 30,000 Consumption 21,000

Required:

Question 1: Calculate tax liability for each household.

Question 2: What is the average tax rate for each household?

Question 3: What is the marginal tax rate for each household?

Note: Please show the work not just the answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163262

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