3.4 (Macro): Progressive Tax: Calculate Tax Rate, ATR, MTR: Paper 3 (HL), Part 2: Inequality,Poverty скачать в хорошем качестве

3.4 (Macro): Progressive Tax: Calculate Tax Rate, ATR, MTR: Paper 3 (HL), Part 2: Inequality,Poverty

Video tutorial for IB Econ students illustrating how to calculate (HL only) the total tax rate and average tax rate from a set of data. Playlist: Macro, Global: Economics of inequality and poverty, Measuring development:    • Macro, Global: Economics of inequality and...   Playlist: Micro, Macro, Global: Calculations: Paper 2, 3    • Micro, Macro, Global: Calculations: Paper ...   Tax Foundation, 2024 US Tax Brackets: https://taxfoundation.org/data/all/fe... Tax Foundation on Wikipedia: https://en.wikipedia.org/wiki/Tax_Fou... --- Part 1 of 3.4 Calculate Total & Average Tax Rate from a set of data:    • 3.4 (Macro): Progressive Tax: Calculate Ta...   --- Progressive taxation = A form of taxation in which as income increases, the proportion of income paid as taxes increases. As a result, the average tax rate increases. (at time 1:25) Average tax rate = Tax paid divided by total income and multiplied by 100 so that it is expressed as a percentage. (at time 1:44) • ATR = (Tax / Total Income) x 100 Marginal tax rate = The proportion of any additional income, which must be paid as tax. Typically refers to the tax rate that applies to the highest tax bracket of an individual’s income. (at time 2:25) • Change (Δ) in tax (T) as a result of a change (Δ) in income (Y) • MTR = (Δ Tax / Δ Income) • MTR = (Δ T / Δ Y) --- Paper 3 type question (at time 2:40) The marginal income tax rates in Country X are provided in Table 1. Table 1 Annual Income ($US) for Single Filers and Marginal Income Tax Rate (%) 0 - 11,000 at MTR of 10 11,001 - 47,000 at MTR of 12 47,001 - 100,000 at MTR of 22 100,001 - 190,000 at MTR of 24 190,001 - 250,000 at MTR of 32 250,001 - 600,000 at MTR of 35 600,001 or more at MTR of 37 --- Part 1 of 3.4 Calculate Total & Average Tax Rate from a set of data:    • 3.4 (Macro): Progressive Tax: Calculate Ta...   Steve earns 120,000 annually and Mary earns 255,000 annually. (at time 2:38) (a)(i) Using the information in Table 1, calculate Steve’s total income tax. (at time 2:38) (ii) Using your answer to part (i), calculate Steve’s average tax rate. (at time 2:55) (iii) State Steve’s marginal tax rate. (at time 3:34) (iv) Using the information in Table 1, calculate Mary’s total income tax. (at time 4:15) (v) Using your answer to part (iv), calculate Mary’s average tax rate. (at time 9:00) (vi) State Mary’s marginal tax rate. (at time 10:00) --- Part 1: Calculations for questions (a)(i) to (iii) (i) Workings (at time 2:30) Steve earns 120,000 annually 11,000 - 0 = 11,000 11,000 x 0.10 = 1,100 47,000 - 11,000 = 36,000 36,000 x 0.12 = 4,320 *100,000 - 47,000 = 53,000 53,000 x 0.22 = 11,660 *120,000 - 100,000 = 20,000 20,000 x 0.24 = 4,800 Total Tax = 1,100 + 4,320 + 11,660 + 4,800 = 21,880 Total Tax = 21,880 --- (ii) Workings (at time 2:55) Average Tax Rate = ATR = (Total Tax / Total Income) x 100 ATR = (21,880 / 120,000) x 100 ATR = 18.23% --- (iii) Workings (at time 3:34) Steve's Marginal Tax Rate = 24% --- Calculations and workings for questions (iv) to (vi) (iv) Workings (at time 4:15) Mary earns 255,000 annually 11,000 - 0 = 11,000 11,000 x 0.10 = 1,100 47,000 - 11,000 = 36,000 36,000 x 0.12 = 4,320 *100,000 - 47,000 = 53,000 53,000 x 0.22 = 11,660 *190,000 - 100,000 = 20,000 90,000 x 0.24 = 21,600 250,000 - 190,000 = 60,000 60,000 x 0.32 = 19,200 255,000 - 250,000 = 5,000 5,000 x 0.35 = 1,750 Total Tax = 1,100 + 4,320 + 11,660 + 21,600 + 19,200 + 1,750 = 59,630 Total Tax = 59,630 --- (ii) Workings (at time 2:50) Average Tax Rate = ATR = (Total Tax / Total Income) x 100 ATR = (59,630 / 255,000) x 100 ATR = 23.38% --- (iii) Workings (at time 10:00) Mary's Marginal Tax Rate = 35%