Exhibit 9-1 A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages.Assume that the flat tax rate is 12%.
Refer to Exhibit 9-1.Above $25,000 in wages,the average tax rate:
A) would remain flat with an increase in income.
B) would increase with an increase in income.
C) would decrease with an increase in income.
D) none of the above
Correct Answer:
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