80.2K

Verified Solution

Link Copied!

Taxable income and Total Tax Liability are in thousands. Item Number of returns Taxable income Total tax liability Average tax rate Under $15,000 35,893,070 $ 22,366,884 $ 2,735,988 12.23% Ranges of Adjusted Gross Income $15,000 to under $30,000 to under $50,000 to under $30,000 $50,000 $100,000 30, 291,595 26,903,065 33,230,782 $ 212,900,745 $ 563,628,007 $ 1,586,320,799 $ 19,148,950 $ 58,492,733 $ 208,563,012 8.99% 10.38% 13.15% $100,000 to under $200,000 19,122,458 $ 1,911,228,592 $ 321,922,180 16.84% $200,000 or more 7,274,898 $ 3,050, 132,039 $ 857,415,585 28.11% *The average tax rate is total tax liability divided by taxable income. Required: a. 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 2018 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? Reg a Reg b If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.00%, calculate the amount of tax liability for 2018 for all taxpayers. Consider intermediate computations in thousands of dollars, rounded to the nearest whole number. Enter your final answer in dollars and not in thousands of dollars.) Amount of tax liability Taxable Income and Total Tax Liability are in thousands. Item Number of returns Taxable income Total tax liability Average tax rate* Under $15,000 35,893,070 $ 22,366,884 $ 2,735,988 12.23% Ranges of Adjusted Gross Income $15,000 to under $30,000 to under $50,000 to under $30,000 $50,000 $100,000 30, 291,595 26,903,065 33, 230, 782 $ 212,900,745 $ 563,628,007 $ 1,586, 320,799 $ 19,148,950 $ 58,492,733 $ 208,563,012 8.99% 10.38% 13.15% $100,000 to under $200,000 19, 122,458 $ 1,911, 228,592 $ 321,922,180 16.84% $200,000 or more 7,274,898 $ 3,050, 132,039 $ 857,415,585 28.11% *The average tax rate is total tax liability divided by taxable income. Required: a. 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 2018 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? Reg a Reg b What is the amount and nature of difference from actual tax liability specified in the above table? (Input your answer as a positive number. Consider intermediate computations in thousands of dollars, rounded to the nearest whole number. Enter your final answer in dollars and not in thousands of dollars.) Amount Nature Difference

Answer & Explanation Solved by verified expert

See Answer