What is the vertical equity of this particular tax

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Assignment:

A state applies a 7 percent tax to consumer purchases of many items. These are data for two typical families: Smith Family Annual Income = $60,000 Family Size = 2 Purchases of taxed items = $30,000Jones Family Annual Income = $75,000 Family Size = 3 Purchases of taxed items = $40,000 What statutory rate does each family pay? What effective rate does each family pay? What is the vertical equity of this particular tax?

Reference no: EM133697878

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