Congress would like to increase tax revenues by 11.5 percent. Assume that the average taxpayer in the United States earns $62.00 and pays an average tax rate of 10 percent. a. 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? (Roun your answer to 2 decimal places.) XAnswer is complete but not entirely correct. Average tax rate 11.50 X%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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B.
%24
Mange
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.
a. 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? (Round
your answer to 2 decimal places.)
Answer is complete but not entirely correct.
Average tax rate
11.50 X%
b. This is an example of what type of forecasting?
O Dynamic
O Static
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5 of 5
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Transcribed Image Text:B. %24 Mange 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. a. 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? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Average tax rate 11.50 X% b. This is an example of what type of forecasting? O Dynamic O Static < Prev 5 of 5 Next > 61°F re to search M Home F12 %23 41 3. P. F M
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