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Suppose the Tax Rate on the First $10,000 of Income

Question 105

Multiple Choice

Suppose the tax rate on the first $10,000 of income is zero;it is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.What is the family's income tax bill?


A) $40,000
B) $22,000
C) $30,000
D) $20,000

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