Asked by Shiva Ghahramani on Jun 14, 2024
Verified
What is the average tax rate and how is it determined?
Average Tax Rate
The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), often expressed as a percentage.
- Explain fundamental taxation principles, encompassing proportional and regressive tax frameworks, along with differentiating marginal from average tax rates.
Verified Answer
JH
Jimmy HuynhJun 18, 2024
Final Answer :
The average tax rate is the proportion of tax that is assessed,on average,on the total taxable income of a taxpayer.It is determined by dividing the total tax liability by the total taxable income (or tax base).
Learning Objectives
- Explain fundamental taxation principles, encompassing proportional and regressive tax frameworks, along with differentiating marginal from average tax rates.