Say that Thailand has a workforce of 35,709,487 people, each of whom earns an average salary of (equivalent USD) $8,630 annually. If the Thai government wants to raise $70 billion in tax revenue, approximately where should it set the income tax rate?

The total annual income is about 35,709,487 × $8,630 = $308.2 billion. To raise $70 billion, divide $70 billion by $308.2 billion, giving a tax rate of about 0.227, or 22.7%. The closest choice is 23%, choice C.

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