8 - 17% and those with taxable income below $100,000 have...

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A change to a 17% flat tax could cause a considerable increase in many taxpayers’ taxes and a considerable decrease in the case of others. Explain this statement in light of the statistics in Table 1-3 of the text. Answer: Those with taxable incomes above $100,000 have average tax rates greater than
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Unformatted text preview: 17% and those with taxable income below $100,000 have average tax rates less than 17%. Thus, if a 17% flat tax were enacted, those with taxable incomes under $100,000 would see their tax liability go up and those with taxable incomes over $100,000 would have lower tax liability....
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This note was uploaded on 09/16/2011 for the course ACCOUNTING 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.

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