Congress would like to increase tax revenues by 16 percent. Assume that the average taxpayer in the United States earns $51,000 and pays an average tax rate of 30 percent.

Required:

If the income effect is in effect for all taxpayers, what average tax rate will result in a 16 percent increase in tax revenues?

Note: Round your answer to 2 decimal places.

This is an example of what type of forecasting