Suppose a taxpayer has an income of $50,000 and a taxable income of $45,000,and pays $5,000 in taxes.If the taxpayer talks of being taxed at a 10 percent tax rate,she is referring to the

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The effective tax rate is calculated by dividing the total taxes paid ($5,000) by the total income ($50,000), resulting in a 10% rate. This reflects the actual percentage of income paid in taxes.

Suppose a Taxpayer Has an Income of $50,000 and a Taxable