What does a person who earns $74500 pay as taxes in the following case: In a progressive income tax system, the tax till $25000 is 10%, it becomes 25% till $50000 and beyond $50000 it is 30%.

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hala718 eNotes educator | Certified Educator

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We will divide the income into the three categories.

74,500 = 25,000 + 25,000 + 24,500

The first 25,000, the tax is 10%

==> 10% * 25,000 = 2500

The second 25,000 , the tax is 25%

==> 25% * 25,000 = 6256

The third is 24,500 , the tax is 30%.

==> 30% * 24,500 = 7350

Now we will add all...

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