Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Question

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013. 
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Quizplus · Accepted Answer

In 2012, Jake's taxable income would have been taxed at a rate of 10%. This means he would have paid $2,000 in taxes, making his average tax rate 10%. In 2013, Jake's taxable income would have been taxed at a rate of 15%. This means he would have paid $3,000 in taxes, making his average tax rate 15%. Because his average tax rate increased from 10% to 15%, the correct answer is B.

Table 12-9 United States Income Tax Rates for a Single Individual, 2012