Fill in the blanks to make the following statements correct.
a. Suppose you earn an annual income of $22 500 and you paid a total of $3600 in taxes. Your aver- age tax rate is _______.
b. Suppose you earn an annual income of $22 500 and each dollar earned is taxed at the same rate. Your marginal tax rate is the same as _______.
c. Suppose the marginal tax rate on the first $25 000 of income is 20 percent, and on any income above that, the rate rises to 30 percent. If your annual income is $42 000, you will pay total income tax of _______.
d. Lower-income groups typically spend a higher proportion of their income than do higher-income groups. For this reason, excise and sales taxes are considered to be somewhat _______.
e. The most important source of revenue for municipalities is the _______ tax. Rather than being a tax on income or expenditure, it is a tax on _______.