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What are the marginal income tax rates and levels paid for different income levels? [Hint: see Table 1 of http://taxfoundation.org/article/summary-latest-federal-individual-income-tax-data-0 for 2009 data but you may be able to find an updated version]. How much income gets you into the top quartile or quintile? Discuss the issues of regressive, proportional, and progressive taxation. Justify how much your marginal rate should rise and what actions such a rise would cause you to take.
Marginal tax rate is that rate that an individual has to pay as tax on the last dollar of income.It is important because it determine how much an assessee i.e the tax payer gets to save andthen…
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