Question
Congress would like to increase tax revenues by 19 percent. Assume that the average taxpayer in the United States earns $54,000 and pays an
Congress would like to increase tax revenues by 19 percent. Assume that the average taxpayer in the United States earns $54,000 and pays an average tax rate of 15 percent. Required: a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 19 percent increase in tax revenues? Note: Round your answer to 2 decimal places. b. This is an example of what type of forecasting? Complete this question by entering your answers in the tabs below. Required A Required B If the income effect is in effect for all taxpayers, what average tax rate will result in a 19 percent increase in tax revenues? Note: Round your answer to 2 decimal places. Average tax rate Required A Required B % This would result in what type of tax rate structure? Tax rate structure
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Get StartedRecommended Textbook for
Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
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