Question

6.What is the average tax rate?

Tax rate multiplied by the next dollar of taxable income


Tax rate divided by the next dollar of taxable income


Total taxes paid divided by the total taxable income


Total taxable income multiplied by total taxes paid






Question 7 What is the primary source of revenue for the government?


Borrowing


Customs duties


Social Security payroll taxes


Individual income taxes

Answer 1

6. The answer is C) Total taxes paid divided by the total taxable income.

7. The answer is D) Individual income taxes

Answer 2

The Correct Answer is C and D.

Answer 6. is C.

Answer 7. is D.

Step-by-step explanation:

Answer 6:

• The average tax rate is calculated by the total taxes paid divided by the total taxable income.
• Average tax rate measures the sacrifice that taxpayers make.

Answer 7:

• Social Security payroll taxes are those taxes which are imposed on both employees as well as employer for the different programs of social security.
• Social Security taxes are collected in the form of Payroll taxes which is compulsory by Federal Insurance Contributions Act.