Question

Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually. If the Thai government wants to raise $70 billion in tax revenue, approximately where should it set the income tax rate? a. 5% b. 15% c. 23% d. 29% Please select the best answer from the choices provided A B C D

Answer 1

Answer:

The answer is C: 23%

Explanation:

Answer 2

Answer:

Ans. c) Income tax rate must be 23%

Explanation:

Hi, the total income of Thailand´s workforce is:

$Total Income=35,709,487 people*\frac{8,630}{person} = 308,172,872,810$

Since Thailand´s government needs to raise $70,000,000,000, the tax rate has to be:

$TaxRate=\frac{70,000,000,000}{308,172,872,810} =0.23$

So Thailand´s tax rate must be: c. 23%

Best of luck.