Problemcongress would like to increase tax revenues by 115, Ask an Expert

Accounting

Problem:

Congress would like to increase tax revenues by 11.5 percent. Assume that the average taxpayer in the United States earns $62,000 and pays an average tax rate of 10 percent.

Required:

Question: If the income effect is in effect for all taxpayers, what average tax rate will result in a 11.5 percent increase in tax revenues?

Note: Be sure to show how you arrived at your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91163953

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