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Study Question6 G My HomeK suggested ser\" Aplz Student Qurstion Mating Pear ade

ID: 1105853 • Letter: S

Question

Study Question6 G My HomeK suggested ser" Aplz Student Qurstion Mating Pear adengageBean Web Slice Galery. Attempts:Average: 12 6. Study Questions and Problems 6 Calculate and enter the average tax rate in the following table Round to the first decimal place. (Mint: I the average tax rake is 0.05, enter thes number as 5 in the box in column 3) Income (S) $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 Average Tax Rate (%, Example. 0.05-5) Gasoline Tax Paid $500 500 $500 $500 $500 $500 $500 regressive Ifthe gas tax shown in the previous table is a 5% tax on gasoline purchased, the tax is a tax. Grade it Now Continue wihout saving

Explanation / Answer

Ans:

Average tax rate = (Amount of tax / Total income ) * 100

Table showing Average tax rate

When 5% tax on gasoline purchased is imposed, the tax is Proportional tax.

When proportional tax is imposed tax rate is fixed, which means it does not change even if the taxable amount increases or decreases.In this case fixed tax rate of 5% is imposed.

Gasoline tax paid Income Average tax rate $500 $10,000 5% $500 $12000 4.17% $500 $14000 3.57% $500 $16000 3.125% $500 $18000 2.78% $500 $20000 2.5% $500 $22000 2.27%