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HiI need help with this question Congress would like to increase tax revenues by 12.5 percent. Assume that the average taxpayer in the United States
HiI need help with this question
Congress would like to increase tax revenues by 12.5 percent. Assume that the average taxpayer in the United States earns $63,000 and pays an average tax rate of 20 percent.
a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 12.5 percent increase in tax revenues? (Round your answer to 2 decimal places.)
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