*** Item Number of returns Taxable income Total tax liability. Average tax rate* Under $15,000 $15,000 to under $30,000 27,369,909 $ 192,881,768 $ 14,769,011 39,269,402 $ 6,938,229 $ 777,332 11.20% *The average tax rate is total tax liability divided by taxable income. 7.66% $30,000 to under $50,000 27,138,637 $ 604,264,808 $ 50,115,871 8.29% $50,000 to under $100,000 34,436,449 $ 1,753,557,416 $ 186,008,777 10.61% $100,000 under $200,000 20,908,838 $ 2,304,350,171 $ 317,634,367 13.78% 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 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table?
*** Item Number of returns Taxable income Total tax liability. Average tax rate* Under $15,000 $15,000 to under $30,000 27,369,909 $ 192,881,768 $ 14,769,011 39,269,402 $ 6,938,229 $ 777,332 11.20% *The average tax rate is total tax liability divided by taxable income. 7.66% $30,000 to under $50,000 27,138,637 $ 604,264,808 $ 50,115,871 8.29% $50,000 to under $100,000 34,436,449 $ 1,753,557,416 $ 186,008,777 10.61% $100,000 under $200,000 20,908,838 $ 2,304,350,171 $ 317,634,367 13.78% 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 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
T2.
Transcribed Image Text:d
k
ht
ences
Item
Number of returns
Taxable income
Total tax liability
Average tax rate*
Required a Required b
39,269,402
$ 6,938,229
$777,332
11.20%
*The average tax rate is total tax liability divided by taxable income.
Under $15,000
Amount of tax liability
be here to search
$15,000 to under
$30,000
100
27,369,909
$ 192,881,768
$ 14,769,011
D
7.66%
Prev
$30,000 to under
$50,000
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 2021 for all taxpayers.
b. What is the amount and nature of difference from actual tax liability specified in the above table?
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 2019 for all taxpayers.
Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number.
27,138,637
$ 604,264,808
$ 50,115,871
3 of 16
Required b >
***
8.29%
$50,000 to under
$100,000
Next
34,436,449
$ 1,753,557,416
$ 186,008, 777
10.61%
$100,000 to under
$200,000
20,908,838
$ 2,304,350,171
$ 317,634,367
72°F Sunny
13.78%
>
12:00 PM
3/26/2023
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