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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 Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
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S 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 8 b. Is this tax regressive, proportional, or progressive?
Transcribed Image Text:S 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 8 b. Is this tax regressive, proportional, or progressive?
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