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Business, 27.11.2019 06:31 jumoke26

Acity government imposes a proportional income tax on all people who earn income within its city limits. in 2004, the city's income tax rate was 0.04 (4 percent), and it collected $20.00 million in income taxes. in 2005, it raised the income tax rate to 0.05 (5 percent), and its income tax collections declined to $19.20 million. what happened to the city's income tax base between 2004 and 2005? a. it fell by $0.80 million. b. it fell by $116 millionc. it ross by $116 milliond. it cannot be determined since the tax rate changed

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