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Suppose that the income tax in the nation of Altima is computed at a 5 percent rate on taxable income up to $30,000. Taxable income
Suppose that the income tax in the nation of Altima is computed at a 5 percent rate on taxable income up to $30,000. Taxable income above $30,000 is subject to a tax of 10 percent. Taxable income is computed as an individual's income minus a deduction of $10,000. What is the average tax rate for an individual earning $50,000?
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