4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000, Eileen earns $22,000, and Hubert earns $33,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $11,000, owes $2,860 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual income of $11,000, $22,000, and $33,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Clancy 11,000 2,860 Eileen 22,000 3,520 Hubert 33,000 3,630 The income tax system for this country is
4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000, Eileen earns $22,000, and Hubert earns $33,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $11,000, owes $2,860 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual income of $11,000, $22,000, and $33,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Clancy 11,000 2,860 Eileen 22,000 3,520 Hubert 33,000 3,630 The income tax system for this country is
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
Problem 4PA
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Transcribed Image Text:4. Computing and interpreting average tax rates
In a hypothetical economy, Clancy earns $11,000, Eileen earns $22,000, and Hubert earns $33,000 in annual income. The following table shows the
annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $11,000, owes $2,860 in taxes.
Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual
income of $11,000, $22,000, and $33,000, respectively.
Taxable Income
Tax Liability
Average Tax Rate
Taxable Income
(Dollars)
(Dollars)
(Percent)
Clancy
11,000
2,860
Eileen
22,000
3,520
Hubert
33,000
3,630
The income tax system for this country is
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