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-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias initiates a tax of 10% on all income up to $50,000.Income above $50,000 is not taxed.An individual earning $75,000 will have a average tax rate of _____%.

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Use the following to answer question: 
-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias initiates a tax of 10% on all income up to $50,000.Income above $50,000 is not taxed.An individual earning $75,000 will have a average tax rate of _____%.

Quizplus · Accepted Answer

Since the individual earns $75,000, their taxable income is only $50,000 ($75,000 - $50,000). Therefore, their tax rate will be 10% of $50,000, which is $5,000. Their average tax rate would be $5,000 / $75,000, which equals 0.0667 or 6.67%. Therefore, the correct answer is C.

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