... AMOUNT PERCENTINCOME OF TAX OF INCOME OF TAX OF INCOME OF TAX OF INCOME$ 50 ,000 $12 ,50 0 25% $ 15, 000 30% $10,000 20%100,000 25, 000 25 25, 000 25 25, 000 25 200,000 50 ,000 25 40,000 20 60,000 30THREE ... CHAPTER 12 THE DESIGN OF THE TAX SYSTEM 253 For example, suppose that the government taxes 20 percent of the first $50 ,000 of income and 50 percent of all income above $50 ,000. Under this tax, ... BILLIONS) PER PERSON OF SPENDINGEducation $ 399 $1 ,50 6 33%Public welfare 197 743 17Highways 79 298 7Other 51 8 1, 955 43Total $1,193 $4 ,50 2 100%SOURCE: Economic Report of the President, 1999,...