Suppose a tax is such that an individual with an income of $10,000 pays $1,500 of tax, a person with an income of $20,000 pays $2,500 of tax, a person with an income of $30,000 pays $3,000 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income $ 10,000 20,000 30,000 Tax Paid Average Tax Rate 15 % Regressive $1,500 2,500 3,000 4 b. Is this tax regressive, proportional, or progressive?

Suppose a tax is such that an individual with an income of $10,000 pays $1,500 of tax, a person with an income of $20,000 pays $2,500 of tax, a person with an income of $30,000 pays $3,000 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income $ 10,000 20,000 30,000 Tax Paid Average Tax Rate 15 % Regressive $1,500 2,500 3,000 4 b. Is this tax regressive, proportional, or progressive?

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 2PA

See similar textbooks

Similar questions

Have spending and taxes by state and local governments In the United States had a generally upward or downward trend in the last few decades?
Have the spending and taxes of the U.S. federal government generally had an upward or a downward trend in the last few decades?
Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
A and B
How does tax affect AE line? Draw graphs to explain
1st statement – The Legislative Department levies the taxes.2nd statement – The Executive Department, through the Department of Finance’s line agency, the Bureau of Internal Revenue makes the assessment and collection of internal revenue taxes. a. Only the 1st statement is trueb. Only the 2nd statement is truec. Both statements are trued. Both statements are false
The Federal Budget- Ask FRED The accompanying graph contains data on "U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket'" reproduced in the accompanying graph to analyze this aspect of the U.S. tax system_ over the past 100 vears. FREDU.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket 100 90 80 70 60 50 a 40 30 20 10 0 1920 1940 1960 1980 2000 Source: U.S. Department of the Treasury. Internal Revenue Service a. When the income tax was first introduced, what was the rate on the highest bracket?
Plz solve in 15 min it's urgent.
The following table shows tax payments made for various incomes. According to the information in the table below, the tax system is: Table 3.1 Taxable income $1,000 $2,000 $4,000 $8,000 Тах рayments $10 $30 $90 $270 a. regressive between $1,000 and $2,000 of income but progressive above $2,000. b. progressive throughout all levels of income. c. regressive throughout all levels of income. O d. progressive between $1,000 and $2,000 of income but regressive above $2,000. O e. proportional throughout all levels of income.
Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers? a. a proportional tax b. a progressive tax c. a regressive tax
ook Refer to the following table for Waxwania: Government Expenditures, G $ 170 Tax Revenues, T Real GDP $ 90 $ 450 170 110 550 170 130 650 170 150 750 170 170 850 nt ences Instructions: Enter your answers as a whole number. a. What is the marginal tax rate in Waxwania? percent b. What is the average tax rate? percent c. Which of the following describes the tax system: proportional, progressive, or regressive? (Click to select)
Question 4 A tax that takes a smaller percentage of an individual's income as their income rises is called a a. proportional tax c. head tax O d. regressive tax