Congress would like to increase tax revenues by 18 percent. Assume that the average taxpayer in the United States earns $53,000 and pays an average tax rate of 25 percent. a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 18 percent increase in tax reven
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Congress would like to increase tax revenues by 18 percent. Assume that the average taxpayer in the United States earns $53,000 and pays an average tax rate of 25 percent.
a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 18 percent increase in tax revenues?
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- What amount is payable to a state tax board if the original sales price is $3,000, and the tax rate is 3.5%?Congress would like to increase tax revenues by 5.5 percent. Assume that the average taxpayer in the United Staes earns $56,000 and pays an average tax rate of 20 percent. If the income effect is in effect for all taxpayers, what average tax rate will result in a 5.5 percent in tax revenues?Suppose a tax is such that an individual with an income of $10,000 pays $2000 of tax, a person with an income of $20,000 pays $3000 of tax, a person with an income of $30,000 pays $4000 of tax, and so forth. What is each person’s average tax rate? Is this tax regressive, proportional, or progressive?
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