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*** 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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