1.1.1 Suppose that in 2015, Congress passed and the president signed a new simple income tax with...
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1.1.1 Suppose that in 2015, Congress passed and the president signed a new simple income tax with a flat rate of 20 percent on all income greater than $35,000 (no tax on the first $35,000). Assume that the tax is imposed on every individual separately. For each of the following total income levels, calculate taxes due and compute the average tax rate. Plot the average tax rate on a graph with income along the horizontal axis. Is the tax proportional, progressive, or regressive? Explain why.
a. $35,000
b. $50,000
c. $65,000
d. $80,000
e. $100,000
f. $125,000
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Related Book For
Principles Of Economics
ISBN: 9780802845610
12 Global Edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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