Order the answer to: Consider the table below. It shows a hypothetical income tax

Order the answer to: Consider the table below. It…

Question	Consider the table below. It shows a hypothetical income tax schedule, expressed in nominal terms, for the year 2012: Family income Taxes due (percent of income) < $20,000……………………. 10 $20,001-$30,000………………… 12 $30,001-$50,000……………… 15 $50,001-$80,000……………… 20 > $80,000……………………. 25 The legislature wants to ensure that families with a given real income are not pushed up into higher tax brackets by inflation. The CPI (times 100) is 175 in 2012 and 185 in 2014. How should the income tax schedule above be adjusted for the year 2014 to meet the legislature’s goal?
Subject	business-economics

Question

Consider the table below. It shows a hypothetical income tax schedule, expressed in nominal terms, for the year 2012:
Family income Taxes due (percent of income)
< $20,000……………………. 10 $20,001-$30,000………………… 12 $30,001-$50,000……………… 15 $50,001-$80,000……………… 20 > $80,000……………………. 25
The legislature wants to ensure that families with a given real income are not pushed up into higher tax brackets by inflation. The CPI (times 100) is 175 in 2012 and 185 in 2014. How should the income tax schedule above be adjusted for the year 2014 to meet the legislature’s goal?

Subject

business-economics

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