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For Example, The Canadian Tax system is based on a progressive tax rate, as income increases the tax rate for additional income increases. Using the numbers below as an example that reflects this type of tax structure, graph the budget line for an individual who can work up to 80 hours a week and up to 50 weeks in the year while making $50 per hour. What are some reason we might see more individuals earning closer to the upper bracket using the numbers below?
Bracket Lower 0 45,000 100,000 140,000 200,0000
Bracket Upper 45,000 91,000 100,000 140,000
Marginal Tax Rate 0.15 .205 .26 .29 .33
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