Assume that income tax is levied at a standard rate of 30% on all income over ?5000.

(a) Calculate the marginal and average tax rates at the following income levels:(i) ?3000 (ii) ?9,000(iii) ?12,000 (iv) ?20,000(b) Is the tax progressive or regressive?Suppose the tax structure is revised so that income over ?5000 is taxed at 30% as before, but the rate increases to 50% for income over ?10,000.(c) Calculate the marginal and average tax rates as before (in part (a)).(d) Is the tax more or less progressive than before?

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