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Taxable Income and Total Tax Liability are in thousands. Ranges...

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Accounting

Taxable Income and Total Tax Liability are in thousands.

Ranges of Adjusted Gross Income
Item Under $15,000 $15,000 to under $30,000 $30,000 to under $50,000 $50,000 to under $100,000 $100,000 to under $200,000 $200,000 or more
Number of returns 33,998,665 29,548,721 27,127,608 34,537,027 20,094,853 7,788,785
Taxable income $ 21,439,540 $ 213,668,669 $ 578,082,715 $ 1,661,992,914 $ 2,055,707,167 $ 3,408,931,866
Total tax liability $ 1,891,136 $ 18,881,170 $ 59,565,261 $ 218,856,282 $ 343,280,695 $ 945,200,723
Average tax rate* 8.82 % 8.84 % 10.30 % 13.17 % 16.70 % 27.73 %

*The average tax rate is total tax liability divided by taxable income.

Required:

If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17%, calculate the amount of tax liability for 2017 for all taxpayers.

What is the amount and nature of difference from actual tax liability specified in the above table?

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