Given the Tax Rates Below, What Is the Average Tax

question 7

Multiple Choice

Given the tax rates below, what is the average tax rate for a firm with taxable income of $178,500?

• A) 29.62 percent
• B) 30.13 percent
• C) 34.00 percent
• D) 35.67 percent
• E) 39.00 percent

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Definitions:

Tax

A mandatory monetary fee or different kind of charge levied on a taxpayer by a government entity to support government expenditures and various public costs.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures, providing revenue for government functions.

Elasticities

Measures in economics that indicate how changes in one variable, such as price or income, affect a change in another variable, such as demand or supply.