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Business, 07.06.2020 05:02 johnkings140

Annual Income Tax Rate Up to $80,000 10% From $80,001 to $120,000 20% Over $120,000 30% This is an example of aregressive income tax. Van, a resident of Econoland, currently works 20 hours a week and earns an annual income of $80,000. After paying income taxes, Van receives$72,000 per year. If Van works an additional 10 hours a week (30 hours a week total), his annual income will be $120,000. After paying income taxes, Van will receive$100,000 per year. In other words, by working an additional 10 hours per week, Van will receive an additional$28,000 . If Van works 10 more hours in a week (40 hours a week total), his annual income will further increase to $160,000. After paying income taxes, Van will receive$140,000 per year. In other words, by working 10 more hours per week, Van will receive$36,000.00 more than what he would receive if he works only 30 hours a week. As Van works more, the additional amount he receives from working 10 more hoursdecreases , which means his cost of leisuredecreases .

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