When a tax base is $120,000, the tax liability is $28,800 and when the tax base is $250,000, the tax liability is $80,000. This tax rate structure is:
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The tax rate for the first tax base is $28,800 / $120,000 = 0.24 or 24%. The tax rate for the second tax base is $80,000 / $250,000 = 0.32 or 32%. Show more…
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