Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. taxable income and total tax liability are in thou

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

70.2K

Verified Solution

Question

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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of...

Civil Engineering
1.2K views

QUESTION ONE: CASE STUDY Title: Municipal Solid Waste Management in the Kanzo Metropolitan Area, Sikaman Kanzo is a metropolitan area...

Psychology
1.2K views

G1.1. Effective managers accept the political nature of organizations. Examine the individual and organizational factors that influence...

General Management
1.2K views

What is an Ethics Compliance Program designed to accomplish? What are the minimum requirements of such...

Accounting
1.2K views

Explain the evolution of corporate governance. What problems developed? What are the current trends? Discuss the pros...

Geometry
1.2K views

Listen Classify each angle pair as corresponding alternate interior alternate exterior or consecutive interior angles...

Algebra
1.2K views

Simplify and state any restrictions on the domain 3 15 54 az

Accounting
1.2K views

On August 31,2024, Indigo Mortgage enters into a 10-year, 6%, $132,000 mortgage to finance the...

Accounting
1.2K views

Current Attempt in Progress If you invest $ 45000 to earn 7% interest, which of...

Accounting
1.2K views

Multiple Choice Question When the stockholders receive a dividend, how would this affect the equity...

Finance
1.2K views

Below is financial information for two restaurant retailers. Poppers Company operates an innovative retail bakery-cafe...

Finance
1.2K views

6. Dividends, repurchases, and firm value Remember that the primary goal of a firm is...