Congress is debating a proposed law to reduce tax rates. If the current tax rate is r%, then the proposed rate after x years is given by this formula: r/1+1/1+1rRewrite this formula as a simple fraction. Use your formula to calculate the new tax rate after 1 year, 2 years, 5 years, and 15 years. 1 year____2 years____5 years___15 years____
Would tax rates increase or decrease over time? O increase O decrease Congress claims that this law would ultimately cut peoples' tax rates by 75%. Do you believe this claim? Explain.