Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.

-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What happened to his average tax rate between 2002 and 2003?

Question

Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.
 
-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What happened to his average tax rate between 2002 and 2003?

Quizplus · Accepted Answer

In 2002, Costa's taxable income falls into the 27% tax bracket, resulting in an average tax rate of 18.72%. In 2003, Costa's taxable income falls into the 25% tax bracket, resulting in an average tax rate of 17.17%. Therefore, his average tax rate decreased between 2002 and 2003.

Table 12-2 United States Income Tax Rates for a Single Individual, 2002