The table below shows labor income for four individuals and the amount each has paid in income taxes. Labor Income, Tax Paid, and Average Tax Rate Labor Income Tax Paid (dollars) $6,300 9,240 11,200 17,500 Individual Samantha Charles Amanda Young (dollars) $45,000 66,000 80,000 125,000 Average Tax Rate (percent) Instructions: Enter your answers as a whole number. a. Complete the table above by calculating the average tax rate paid by each individual. b. Is the income tax depicted here progressive, regressive, or proportional? The income tax is proportional. The income tax is progressive. The income tax is regressive.
The table below shows labor income for four individuals and the amount each has paid in income taxes. Labor Income, Tax Paid, and Average Tax Rate Labor Income Tax Paid (dollars) $6,300 9,240 11,200 17,500 Individual Samantha Charles Amanda Young (dollars) $45,000 66,000 80,000 125,000 Average Tax Rate (percent) Instructions: Enter your answers as a whole number. a. Complete the table above by calculating the average tax rate paid by each individual. b. Is the income tax depicted here progressive, regressive, or proportional? The income tax is proportional. The income tax is progressive. The income tax is regressive.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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