Bar graph with title Total Effective Tax Rates in 2011. Yaxis is labeled Total Effective Tax Rate. xaxis is labeled Income Group over Average Income. Data are Lowest 20 percent, 13,000 dollars, 17.4 percent, Second 20 percent, 26,100 dollars, 21.2 percent; Middle 20 percent, 42,000 dollars, 25.2 percent; Fourth 20 percent, 68,700 dollars, 28.3 percent, Next 10 percent, 105,000 dollars, 29.5 percent; Next 5 percent, 147,000 dollars, 30.3 percent, Next 4 percent, 254,000 dollars, 30.4 percent; Top 1 percent, 1,371,000 dollars, 29.0 percent.

Which best describes the tax rate for the Top 1%, as compared with the rates paid by the groups labeled Next 10%, Next 5%, and Next 4%?

Regressive

Explanation:

Bar graph with title Total Effective Tax Rates in 2011. Yaxis is labeled Total Effective Tax Rate. xaxis is labeled Income Group over Average Income. Data are Lowest 20 percent, 13,000 dollars, 17.4 percent, Second 20 percent, 26,100 dollars, 21.2 percent; Middle 20 percent, 42,000 dollars, 25.2 percent; Fourth 20 percent, 68,700 dollars, 28.3 percent, Next 10 percent, 105,000 dollars, 29.5 percent; Next 5 percent, 147,000 dollars, 30.3 percent, Next 4 percent, 254,000 dollars, 30.4 percent; Top 1 percent, 1,371,000 dollars, 29.0 percent.

Which best describes the tax rate for the Top 1%, as compared with the rates paid by the groups labeled Next 10%, Next 5%, and Next 4%

yaxis (%) Effective tax rate

20

17.4

20

21.2

20

25.2

20

28.3

10

29.5

5

30.3

4

30.4

1

29

x Axis (income Group over Average Income.)

13000

26,100

42000

68700

105000

147000

254000

1,371,000

from the data, we can say that the tax rate to be regressive