Question

Suppose that algeria has a workforce of 9,416,534, each of whom earns an average annual salary of (equivalent us dollars) $6,844. if the algerian government wishes to raise $9 billion in tax revenue, approximately where should it set the income tax rate? a. 9% b. 14% c. 18% d. 26% please select the best answer from the choices provided a b c d

Answer 1

The income tax rate is 14% if the Algerian government wishes to raise $9 billion in tax revenue and has a workforce of 9,416,534.

What is the income tax rate?

It is defined as the tax rate applied on the solely earned money by a single entity.

Algeria has a workforce of 9,416,534

Each entity average annual salary = $6,844

The raise in tax revenue = $ 9 bilion

To find the income tax rate we must find the total income of the workforce,

= 9,416,534×6844

= $64.45 billion

Now for income tax:

$\rm = \frac{Tax \ revenue}{Total \ income}$

$=\rm \frac{9 \ billion}{64.45 \ billion}\times 100$

≈ 14 %

Thus, the income tax rate is 14% if the Algerian government wishes to raise $9 billion in tax revenue.

Learn more about the income tax here:

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