Table 12-12
-Refer to Table 12-12. If the government imposes a $3,000 lump-sum tax, the marginal tax rate for Charles would be
A)0 percent.
B)5 percent.
C)6.7 percent.
D)10 percent.

Question

Table 12-12 
-Refer to Table 12-12. If the government imposes a $3,000 lump-sum tax, the marginal tax rate for Charles would be
A)0 percent. 
B)5 percent. 
C)6.7 percent. 
D)10 percent.

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount that does not change with the level of income, so the marginal tax rate, which is the rate on the next dollar of income, is 0 percent.

Table 12-12 -Refer to Table 12-12. If the Government Imposes a $3,000