Given the Following Tax Structure,what Is the Minimum Tax That

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The Answer is Mort's average tax rate is 20%.

Mort's average tax rate is 20%. A 20% average tax rate on Lizzy's $80,000 total income would result in $16,000 of tax (i.e.,20% × $80,000 = $16,000).Thus,Lizzy must pay more than $16,000 tax for the tax structure to be progressive with respect to average tax rates. Mort's effective tax rate is 16%. A 16% effective tax rate on Lizzy's $110,000 total income would result in $17,600 of tax (i.e.,16% × $110,000 = $17,600).Thus,Lizzy must pay more than $17,600 tax for the tax structure to be progressive with respect to effective tax rates.

A 20% average tax rate on Lizzy's $80,000 total income would result in $16,000 of tax (i.e.,20% × $80,000 = $16,000).Thus,Lizzy must pay more than $16,000 tax for the tax structure to be progressive with respect to average tax rates. Mort's effective tax rate is 16%.

A 16% effective tax rate on Lizzy's $110,000 total income would result in $17,600 of tax (i.e.,16% × $110,000 = $17,600).Thus,Lizzy must pay more than $17,600 tax for the tax structure to be progressive with respect to effective tax rates.

Given the Following Tax Structure,what Is the Minimum Tax That

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