1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
choli [55]
3 years ago
5

Congress would like to increase tax revenues by 17 percent. assume that the average taxpayer in the united states earns $52,000

and pays an average tax rate of 20 percent.
a. if the income effect is in effect for all taxpayers, what average tax rate will result in a 17 percent increase in tax revenues? (round your answer to 2 decimal places.)
Business
1 answer:
Vadim26 [7]3 years ago
3 0

Calculation of average tax rate that will result in a 17 percent increase in tax revenues:


Currently, the average taxpayer in the united states earns $52,000 and pays an average tax rate of 20 percent, so the average tax revenue is 52000*20% = $10,400

If Congress wants to increase tax revenues by 17 percent, then the average tax revenue shall be 10400+(10400*17%) = $12,168


Hence average tax rate that will result in a 17 percent increase in tax revenues shall be = 12168 / 52000 = 0.234 = <u>23.40%</u>






You might be interested in
"Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered i
Anuta_ua [19.1K]

Answer:

Unfair Claims Settlement Practices Act

Explanation:

Here fundamentally, the act which will be acted on the given sentence is generally known as Unfair Claims Settlement Practices Act. Unfair claims practice is the inappropriate restraint of a request by an insurer or an endeavor to diminish the intensity of the claim. By interlacing in unfair claims practices, an insurer strives to diminish its values. Nevertheless, this is unlawful in various jurisdictions. Additionally, most maximum states possess formulated a version of this type of rule. Denominated essentially the Unfair Claims Settlement Practices Act, it defends safeguard consumers from the unfair manner by insurers in the appeals settlement method.

6 0
3 years ago
You own a portfolio consisting of the following​ stocks:
kykrilka [37]

Answer:

expected return is 15.8%

portfolio beta is 94.5%

Explanation:

a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have

0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158

Multiply the result by 100% yields 15.8%

B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;

0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945

multiply the result by 100% yields 94.5%

6 0
3 years ago
On November 1 of year 0, Jaxon borrowed $38,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid
andreev551 [17]

Answer:

$570

Explanation:

The computation of the interest deduction is shown below:

= Interest paid × number of months ÷ (total number of months in a year)

= $3,420  × 2 months ÷ 12 months

= $570

The interest which is deducted in year 0 under the cash method of accounting is $570

And, the two months is calculated from the November 1 to December 31

We simply apply the interest paid formula.

4 0
3 years ago
Assume the union freeman works with pays newer employees less than ones who have been with the organization for a longer time. w
Monica [59]

Assume the union freeman works with pays newer employees less than ones who have been with the organization for a longer time. The basis for this is: two tier contract.

<h3>What is two tier contract?</h3>

Two tier contract can be defined as the way in which employee who work in an organization does not earn the same wages as some employee earn higher wages that others while some earn lesser wages.

Hence, if  newer employees earn lesser  than those who have been with the organization for a longer time. The basis for this is called  two tier contract.

Learn more about Two tier contract here:brainly.com/question/984979

#SPJ1

4 0
2 years ago
David taylor purchased a teapot for $23.95, a coffee maker for $33.95, and a deluxe microwave for $196.75 for his mother's birth
Kaylis [27]
The answer is $275.02
6 0
3 years ago
Other questions:
  • Titanium Metals Company had 20,000,000 shares of $0.01 par value common stock outstanding which had been sold for an aggregate a
    7·1 answer
  • Review the steps in the accounting cycle and answer the following​ questions:
    9·1 answer
  • Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was
    9·1 answer
  • We know that the market should respond positively to good news and that good-news events such as the coming end of a recession c
    8·1 answer
  • If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described asa. normal.b.
    6·1 answer
  • Who wants to have their paper proofread for free?
    9·1 answer
  • Within the relevant range, if there is a change in volume then:__________A) Fixed and variable costs per unit will changeB) Fixe
    12·1 answer
  • Which of the following situations demonstrates informational technology
    9·1 answer
  • A.The loss on the cash sale of equipment was $22,125 (details in b).
    11·1 answer
  • If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!