Statement I: Most poor people have an average tax rate of 10 percent.
Statement II: In 1992 the maximum federal personal income tax rate was 31 percent.

Question

Quizplus · Accepted Answer

Statement II is true as the maximum federal personal income tax rate in 1992 was indeed 31 percent. Statement I is false because poor people typically have a lower average tax rate due to deductions and credits.

Statement I: Most Poor People Have an Average Tax Rate