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Song earns $235,000 taxable income as an interior designer and is taxed at an average rate of 15 percent. ( i.e 35,250 of tax). a)
Song earns $235,000 taxable income as an interior designer and is taxed at an average rate of 15 percent. ( i.e 35,250 of tax). a) If Congress increates the income tax rate such that Song's average tax rate increases from 15 % to 20%, how much more income tax will she pay assuming that the income effect is descriptive?
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