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Given the Following Tax Structure, What Is the Minimum Tax

Question 52

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Given the following tax structure, what is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to effective tax rates?
 Tuxpayer  Salary  Muni-Band Interest  Total Tax  Diego 30,00010,0001,500 Dora 50,0005,000???\begin{array} { | l | r | r | r | } \hline { \text { Tuxpayer } } & \text { Salary } & { \text { Muni-Band Interest } } & { \text { Total Tax } } \\\hline \text { Diego } & 30,000 & 10,000 & 1,500 \\\hline \text { Dora } & 50,000 & 5,000 & ? ? ? \\\hline\end{array}

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Diego's average tax rate is 5 percent.
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