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-(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 an average tax rate of:

Question

Use the following to answer questions: 
-(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 an average tax rate of:

Quizplus · Accepted Answer

The individual will pay 10% tax on the first $50,000 of income, which is $5,000. The average tax rate is the total tax paid divided by the total income, which is $5,000/$75,000 = 6.67%.

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