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What is the elasticity of tax liability

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Consider a tax system in which all income is taxable. The tax rate on the first $20,000 of income is 10 percent. The tax rate on income over $20,000 is 20 percent. What is the elasticity of tax liability with respect to income under this system for an increase in income from $15,000 to $25,000?

Reference no: EM132384686

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