Suppose a tax is such that an individual with an income of $10,000 pays $1,500 of tax, a person with an income of $20,000 pays $2,500 of tax, a person with an income of $30,000 pays $3,000 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income $ 10,000 20,000 30,000 Tax Paid Average Tax Rate 15 % Regressive $1,500 2,500 3,000 4 b. Is this tax regressive, proportional, or progressive?
Suppose a tax is such that an individual with an income of $10,000 pays $1,500 of tax, a person with an income of $20,000 pays $2,500 of tax, a person with an income of $30,000 pays $3,000 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income $ 10,000 20,000 30,000 Tax Paid Average Tax Rate 15 % Regressive $1,500 2,500 3,000 4 b. Is this tax regressive, proportional, or progressive?
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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