Question

In what states do the residents pay the most taxes? Pay the least? Perhaps it depends on the variable used to measure the amount of taxes paid. In 2008 the Tax Policy Center reported the following statistics about the average annual 2006 taxes and percent of personal income paid per person by state.
a. Compare and contrast the variables “taxes per capita” and “percent of personal income.” How do you account for the differences in ranks for District of Columbia and Wyoming?
b. Based on this information, using the highest and lowest per-state amount of taxes paid per person, what was the “average” amount paid per person?
c. Based on this information, using the highest and lowest percent of income per state paid per person, what was the “average” percent paid per person?
d. Explain why your answers in parts b and c are the only average value you can determine from the given information. What is its name?


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  • CreatedAugust 27, 2015
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