Congress would like to increase tax revenues by 105 percent


Congress would like to increase tax revenues by 10.5 percent. Assume that the average taxpayer in the United States earns $61,000 and pays an average tax rate of 20 percent.

a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 10.5 percent increase in tax revenues? (Round your answer to 2 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Congress would like to increase tax revenues by 105 percent
Reference No:- TGS01600526

Expected delivery within 24 Hours