Answer to Question #143503 in Microeconomics for MOHAMED AHMED HASSAN

Question

a country's income tax system it allows 8000 to be tax free . her income from 8000 to 20000 is 15% , her income from 20000 to 40000 is 30% and the income above 40000 is 50% . the income she earns is 54000 . calculate her taxable income

Answer 1

If the income she earns is 54000, then her taxable income is 54,000 - 8,000 = 46,000.