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- d. 25. Clear my choice Price P₁ P₂ C E GH The tax in the graph is equal to Select one: 2 S₂ Quantity O a. P₁-P4 O b. P2-P4 OC. P4-Ps O d. Answers (a) and (c) both measure the excise tax. O e. Answers (b) and (c) both measure the excise tax.The percentage of an increase in income that is taxed is: O a regressive tax. O the marginal tax rate. O the average tax rate. O a flat tax.The top 1% of income earners in the U.S. (those with the highest taxable incomes) pay O about the same percentage of their incomes in taxes as the average U.S. taxpayer. a much lower percentage of their incomes in taxes than the average U.S. taxpayer. O a much higher percentage of their incomes in taxes than the average U.S. taxpayer. O about 15 percent of their incomes in income taxes O a and d
- TRUE - OR - FALSE The distinctive characteristic of a progressive tax is that the dollars paid in taxes rise as income rises. O True O FalseSpecial interest groups tend to be able to infil hce legis O a. special interest groups have rational ignorance. O b. voters have an incentive to oppose the legislation. O c. the costs for voters opposing the legislation are higher than the benefits. O d. special interest groups have an incentive to educate voters.Tax incidence is O A. the potential division of the burden of a tax between buyers and government in a market. O B. the potential division of the burden of a tax between buyers and sellers in a market. O C. the actual division of the burden of a tax between buyers and sellers in a market. O D. the actual division of the burden of a tax between buyers and government in a market.
- Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 a. What percentage of income is paid in taxes at each level? b. Is the tax rate progressive, proportional, or regressive? c. What is the marginal tax rate on the first $1,000 of income? The second $1,000? The third $1,000?Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income Таx Paid Average Tax Rate $ 10,000 $ 2,500 % 20,000 5,000 30,000 7,500Today the federal government collects nearly O $1 billion a year in tax revenues. O $500 billion a year in tax revenues. O $1 trillion a year in tax revenues. O $4 trillion a year in tax revenues.
- 4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate $0-$10,000 0% $10,001-- $60,000 5% $60,001and above 0% For each of the following workers determine his or her marginal and average tax rate d. Would you describe the tax system as proportional, regressive, or progressive? ExplainCompare progressive, regressive, and proportional taxes. Give at least oneexample of each type of tax.Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue commissionerlo~asts a 20 percent increase in sales tax revenue.Is this plausible? Explain.