Congress would like to increase tax revenues by 25 percent. Assume that the average taxpayer in the United States earns $66,000 and pays an average tax rate of 14 percent. If the income effect is larger than the substitution effect, what average tax rate will result in a 25 percent increase in tax revenues? This is an example of what type of forecasting?

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The Answer of Congress would like to increase tax revenues by 25 percent. Assume that the average taxpayer in the United States earns $66,000 and pays an average tax rate of 14 percent. If the income effect is larger than the substitution effect, what average tax rate will result in a 25 percent increase in tax revenues? This is an example of what type of forecasting?

Congress Would Like to Increase Tax Revenues by 25 Percent