Homework (Ch 12)
Back to Assignment
Attempts
Keep the Highest / 2
4. Computing and interpreting average tax rates
In a hypothetical economy, Nick earns $37,000, Rosa earns $74,000, and Tim earns $111,000 in annual income. The following table shows the annual
taxable income and tax liability for these three single individuals. For example, Nick, who earns $37,000, owes $9,250 in taxes.
Use the tax liability figures provided to complete the following table by computing the average tax rate for Nick, Rosa, and Tim with an annual income
of $37,000, $74,000, and $111,000, respectively.
Taxable Income Tax Liability Average Tax Rate
(Percent)
Taxable Income
(Dollars)
(Dollars)
Nick
37,000
9,250
Rosa
74,000
11,100
Tim
111,000
11,100
The income tax system for this country is
Grade It Now
Save & Continue
Continue without saving