Imagine a hypothetical country, Econoville, where the government is considering implementing a progressive tax system. The proposed tax system has three income brackets: Incomes up to $50,000 are taxed at a rate of 10%.

Imagine a hypothetical country, Econoville, where the government is considering implementing a progressive tax system. The proposed tax system has three income brackets:

Incomes up to $50,000 are taxed at a rate of 10%.

Incomes between $50,001 and $100,000 are taxed at a rate of 20%.

Incomes above $100,000 are taxed at a rate of 30%.

Assuming the following income distribution for Econoville:

40% of the population earns less than $50,000 annually.

35% of the population earns between $50,001 and $100,000 annually.

25% of the population earns more than $100,000 annually.

Now, calculate:

A) The total tax revenue generated by this progressive tax system.

B) The average tax rate for the entire population of Econoville.

C) The effective tax rate for the top 10% of income earners (those earning more than $100,000).

D) Compare the revenue and tax burden under this progressive tax system to a flat tax rate of 20% on all incomes.

Provide a detailed breakdown of your calculations, and discuss the potential economic implications of implementing this progressive tax system in terms of income distribution, government revenue, and incentives for higher income individuals

Requirements:

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