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Congress would like to increase tax revenues by 11 percent. Assume that the average taxpayer in the United States earns $46,000 and pays an average
Congress would like to increase tax revenues by 11 percent. Assume that the average taxpayer in the United States earns $46,000 and pays an average tax rate of 15 percent.
If the income effect is in effect for all taxpayers, what average tax rate will result in a 11 percent increase in tax revenues?
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