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Economics - Financial Markets
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Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $2,500 of tax, a person with an income of $30,000 pays $2,500 of tax, and so forth. What is each person’s average tax rate? Instructions: Round your answers to one decimal place. Income Tax Paid Average Tax Rate $10000 $2500 % $20000 $2500 % $30000 $2500 % Is this tax regressive, proportional, or progressive?
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