# economics

posted by
**sheela** on
.

income total spending

$10,000 $10,000

20,000 18,000

50,000 35,000

100,000 60,000

If a sales tax of ten percent is levied on all purchases, calculate

A. amoust of sales tax paid at each income level and

B. the fraction f income paid in taxes at each income level

Let X be pre-tax spending. For a total spending of 10000 = 1.1*X. Solve for X. X=9090.90 Meaning sales tax must be 909.1. Repeat for all other total spending levels.