Taxable Income Tax Liability Average Tax Rate €10,000 €1,200 €20,000 €2,400 €30,000 €3,600 Using the tax liability figures given, compute the average tax rate (that is the proportion of income paid in tax) for an individual with an incom €10,000, €20,000, and €30,000, respectively. Then fill in the last column of the table with these values. The income tax system for this country is

ECON MACRO
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ISBN:9781337000529
Author:William A. McEachern
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Chapter3: Economic Decision Makers
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28. Computing Average Tax Rates
The following table shows the taxable income and tax liability for three single individuals in a certain country. For example, a person with an income
€10,000 has to pay €1,200 in taxes.
Taxable Income
Tax Liability
Average Tax Rate
€10,000
€1,200
€20,000
€2,400
€30,000
€3,600
Using the tax liability figures given, compute the average tax rate (that is the proportion of income paid in tax) for an individual with an income of
€10,000, €20,000, and €30,000, respectively. Then fill in the last column of the table with these values.
The income tax system for this country is
Transcribed Image Text:28. Computing Average Tax Rates The following table shows the taxable income and tax liability for three single individuals in a certain country. For example, a person with an income €10,000 has to pay €1,200 in taxes. Taxable Income Tax Liability Average Tax Rate €10,000 €1,200 €20,000 €2,400 €30,000 €3,600 Using the tax liability figures given, compute the average tax rate (that is the proportion of income paid in tax) for an individual with an income of €10,000, €20,000, and €30,000, respectively. Then fill in the last column of the table with these values. The income tax system for this country is
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