Incremental Tax Model

adjusted gross income

53350

Marcosiana incremental tax model
on $53350
low $	high $	rate %	% of income earned in bracket	tax paid	maximum tax owed in this bracket
0	30000	2		600	600
30001	50000	6		1200	1200
50001	75000	15		502	3750
75001	100000	25		0	6250
100001	1,000,000	30		0	270000
			total tax paid	2302

This Demonstration was developed as an educational model for teaching incremental tax rates.

Marcosiana, a new country, is putting in place a new incremental income tax system. This system provides lower tax rates for households with lower income levels. The tax rate increases as a household's income increases. Explore how income tax assessments would be accomplished under Marcosiana's new system.