Explanation The given case study depicts about the highest benefactors of the lower tax cuts. In this case, the opponent of the tax cut shows the income levels with the amount to be paid as tax, to showcase the information that the rich people were most beneficial by tax cuts. The figure 2.4b shows the average annual tax benefits with the actual tax payments with tax cuts and annual income of the U.S. households. The annual incomes of the households from “more than $1 million” to “less than $10,000” with the amount to be paid as tax are given. Effects of the tax cuts at each income level: • The household who earn less than $10,000 will have the annual tax benefit of $53. • The household who earn income from $10,000 to $20,000 will have the annual tax benefit of $387. • The household who earn income from $20,000 to $30,000 will have the annual tax benefit of $771. • The household who earn income from $30,000 to $40,000 will have the annual tax benefit of $896. • The household who earn income from $40,000 to $50,000 will have the annual tax benefit of $916. • The household who earn income from $50,000 to $75,000 will have the annual tax benefit of $1,132. • The household who earn income from $75,000 to $100,000 will have the annual tax benefit of $1,900...

Statistical Reasoning for Everyday Life (5th Edition)

5th Edition

ISBN: 9780134679259

Author: Bennett

Publisher: PEARSON

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Chapter 2, Problem 1.2F

To determine

Explain the reason that the Figure 2.4b shows the actual incomes rather than incomes as a percentage of the all taxpayers.

Delineate the effects of the tax cuts on each income level.

Explain whether the claim that the “High-Income Households Receive Highest Dollar Benefit from the Tax Cuts”.

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Chapter 2, Problem 1.1F

Chapter 2, Problem 1.3F

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Statistical Reasoning for Everyday Life (5th Edition)

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Explain the reason that the Figure 2.4b shows the actual incomes rather than incomes as a percentage of the all taxpayers. Delineate the effects of the tax cuts on each income level. Explain whether the claim that the “High-Income Households Receive Highest Dollar Benefit from the Tax Cuts”.

Solution Summary: The author explains that the figure 2.4b shows the actual incomes rather than income as a percentage of all taxpayers. The case study depicts the highest benefactors of lower tax cuts.