Compute the tax rates for the three taxpayers shown in Table 33.1.Then use the table to answer the indicated question. $\begin{array}{|c|r|r|r|r|r|}
\hline \text { Taxpayer } & \begin{array}{c}
\text { Income } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Taxable } \
\text { Income } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Taxes Paid } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Effective Tax } \
\text { Rate(Percent) }
\end{array} & \begin{array}{r}
\text { Nominal Tax } \
\text { Rate(Percent) }
\end{array} \
\hline 1 & \$ 200,000 & \$ 100,000 & \$ 6,000 & \% & \% \
\hline 2 & 100,000 & 80,000 & 8,000 & \% & \% \
\hline 3 & 60,000 & 48,000 & 12,000 & \% & \% \
\hline
\end{array}$ In Table 33.1,the nominal tax rate for taxpayer 2 is

Question

Quizplus · Accepted Answer

The nominal tax rate is calculated by dividing the taxes paid by the taxable income. For taxpayer 2, it is $ \frac{8,000}{80,000} \times 100 = 10.0\% $.

Compute the Tax Rates for the Three Taxpayers Shown in Table