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Need some help with the following questions, thanks! 1. Assume for the following scenario that there is a 10% sales tax on gasoline. Determine the

Need some help with the following questions, thanks!

1.

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Assume for the following scenario that there is a 10% sales tax on gasoline. Determine the amount of money each individual in the foiiowing table spends on gasoline taxes and their average tax rate. Total Taxable Inoome Gasoline Expenditures Total Tax Due Average Tax Rate Name (Dollars) (Dollars) (Dollars) (Percent) Gilberto 10,000 10,000 v E Lorenzo 50,000 40,000 v E Neha 70,000 49,000 v E Teresa 110,000 66,000 v E Given the information in the previous table, sales tax on gasoline is V because the average tax rate v as income rises. Suppose Hubert has a total taxable income of $40,000, and he must pay $3,600 in taxes for clothing purchased this year. Kate has a total taxable income of $60,000. The average tax rate for Hubert is Based on Kate's taxable income and the average tax rate you found for Hubert in the prior question, calculate the minimum amount of tax Kate must pay to achieve each tax structure listed in the following table. Tax Needed to Achieve Tax Structure Type of Tax Structure (Dollars) Proportional Regressive ProgressiveComplete the following table, which describes the total tax due by individuals at various income levels, by entering the average tax rate in the last column. (Hint: Be sure to use a whole number. For example, for 0.1, or 10%, enter "10.") Total Taxable Income Total Expenditures Total Tax Due Average Tax Rate (Dollars) (Dollars) (Dollars) (Percentage) 1,000 1,000 120 5,000 3,500 700 10,000 6,000 1,500 100,000 40,000 17,000 The tax shown in this table isCalculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when computing tax rates. For example, 8.25% should be entered as "8.25" and not "0.825.") Total Taxable Income Total Tax Due Average Tax Rate Marginal Tax Rate (Dollars) (Dollars) (Percentage) (Percentage) 0 0 0 0 2,000 200 10,000 800 20,000 1,000 100,000 2,000 The tax rates shown in this table are True or False: If the marginal tax rate is smaller than the average tax rate, then the average tax rate must be decreasing. O True O False

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