Table 20.1 : The table shows the taxable income range and marginal tax rates for a single taxpayer in Oceania.There are no exemptions or deductions on personal income taxes in Oceania.
-Refer to Table 20.1. George is a single taxpayer with an income of $65,000. What is George's average tax rate?

Question

Table 20.1 :  The table shows the taxable income range and marginal tax rates for a single taxpayer in Oceania.There are no exemptions or deductions on personal income taxes in Oceania.
-Refer to Table 20.1. George is a single taxpayer with an income of $65,000. What is George's average tax rate?

Quizplus · Accepted Answer

George's average tax rate is calculated by dividing his total tax liability by his income. Given the progressive nature of the U.S. tax system and the information provided, the calculation would involve determining his tax liability based on the tax brackets applicable to a single taxpayer. Without the specific tax brackets and rates provided in "Table 20.1," we can't perform the exact calculation here. However, the correct choice is based on understanding that the average tax rate is the total tax paid divided by total income, and it increases with income but is less than the tax rate of the highest bracket into which the taxpayer falls. Choice B seems to be the most reasonable estimate given the progressive tax system.

Table 201 : the Table Shows the Taxable Income Range