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Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002?     a) The share of federal individual income taxes paid by the bottom 40% have not changed much.     b) The share of federal individual income taxes paid by the bottom 40% have been increasing.     c) The share of federal individual income taxes paid by the bottom 40% have been decreasing.     d) The share of federal individual income taxes paid by the bottom 40% have turned negative.

Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002?     a) The share of federal individual income taxes paid by the bottom 40% have not changed much.     b) The share of federal individual income taxes paid by the bottom 40% have been increasing.     c) The share of federal individual income taxes paid by the bottom 40% have been decreasing.     d) The share of federal individual income taxes paid by the bottom 40% have turned negative.

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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  1. 08. Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002?
       
    a) The share of federal individual income taxes paid by the bottom 40% have not changed much.
       
    b) The share of federal individual income taxes paid by the bottom 40% have been increasing.
       
    c) The share of federal individual income taxes paid by the bottom 40% have been decreasing.
       
    d) The share of federal individual income taxes paid by the bottom 40% have turned negative.
     
Fig 4b. Shares of individual income tax liabilities (Sources: CBO, NBER, Tax Found.) Orecession years 90 Omajor tax cuts 80 Itax increases 70 --Share of indiv, income taxes paid byTop 10% --Share of indiv. income taxes paid byTop 5% 60 --Share of indiv. income taxes paid byTop 1% 50 Share of indiv. income taxes paid byHighest Quintile -Share of indiv. income taxes paid byFourth Quintile Share of indiv. income taxes paid byMiddle Quintile --Share of indiv. income taxes paid bySecond Quintile Share of indiv. income 40 30 20 taxes paid byLowest Quintile 10 -10 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 recession years 100 100 100 100 100 100 100 major tax cuts 100 100 100 100 100 100 100 tax increases 100 100 48.1 47.6 46.6 49.9 50.5 53.4 62.9 63.7 65.4 66.7 67.7 67.7 67.5 69.6 70.8 | 72.7 Share of indiv. income taxes paid byTop 10% Share of indiv. income taxes paid byTop 5% Share of indiv. income taxes paid byTop 1% 47.6 49.1 54.7 56.3 55.3 54.3 54.5 57.2 58.4 59.3 60.8 72.8 72.7 35.6 34.9 33.9 35.0 36.6 37.7 38.3 41.6 42.1 44.5 42.9 42.1 42.1 44.9 46.4 46.9 48.5 50.9 51.8 53.4 55.1 56.2 55.2 54,5 56.6 58.5 60.7 60.9 61.0 18.3 17.4 16.3 17.7 19.6 | 20.7 21.2 | 24.6 23.5 26.6 24.3 23.8 23,4 26.2 | 27.6 | 27.8 29.0 31.4 32.3 33.5 35.0 36.5 34.4 33.0 34.6 36.7 38.8 39.1 39.5 Share of indiv. income taxes paid byHighest Quintile 64.9 | 64.8 63.9 64.9 66.1 66.3 66.9 68.9 70.9 71.9 71.4 70.4 70.8 73.0 73.8 74.9 76.1 77.6 78.2 79.8 80.6 81.2 82.4 82.7 84.8 85.3 86.3 86.3 86.0 Share of indiv. income taxes paid byFourth Quintile 20.2 20.2 20.6 20.2 19.7 19.2 19.0 18.0 17.5 17.2 17.6 17.8 18.0 17.1 16.8 16.9 16.2 15.5 14.9 14.6 14.0 13,5 14.3 14.7 14.6 13.8 13.1 12.9 12.7 Share of indiv. income taxes paid byMiddle Quintile 10.7 10.8 10.9 10.6 10.2 10.1 9.9 9.2 8.7 8.5 8.9 8.9 9.0 8.4 8.1 8.1 7.7 7.3 7.2 6.4 6.1 5.7 5.3 5.4 4.7 4.7 4.4 4.4 4.6 Share of indiv. income taxes paid bySecond Quintile Share of indiv. income taxes paid byLowest Quintile 4.1 4.2 4.4 4.0 3.8 4.1 4.0 3.7 3.1 2.9 2.8 3.3 2.9 2.5 2.3 1.8 1.9 1.6 1.7 1.3 1.3 1.1 0.3 -0.2 -1.1 -0.9 -0.9 -0.8 -0.3 0.0 0.1 0.2 0.2 0.2 0.3 0.2 0.2 -0.3 -0.4 -0.7 -0.4 -0.8 -0.9 -1.0 -1.7 -2.0 -2.1 -2.0 -2.1 -1.9 -1.6 -2.3 -2.7 -3.0 -2.9 -2.9 -2.8 -3.0 percent share
Transcribed Image Text:Fig 4b. Shares of individual income tax liabilities (Sources: CBO, NBER, Tax Found.) Orecession years 90 Omajor tax cuts 80 Itax increases 70 --Share of indiv, income taxes paid byTop 10% --Share of indiv. income taxes paid byTop 5% 60 --Share of indiv. income taxes paid byTop 1% 50 Share of indiv. income taxes paid byHighest Quintile -Share of indiv. income taxes paid byFourth Quintile Share of indiv. income taxes paid byMiddle Quintile --Share of indiv. income taxes paid bySecond Quintile Share of indiv. income 40 30 20 taxes paid byLowest Quintile 10 -10 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 recession years 100 100 100 100 100 100 100 major tax cuts 100 100 100 100 100 100 100 tax increases 100 100 48.1 47.6 46.6 49.9 50.5 53.4 62.9 63.7 65.4 66.7 67.7 67.7 67.5 69.6 70.8 | 72.7 Share of indiv. income taxes paid byTop 10% Share of indiv. income taxes paid byTop 5% Share of indiv. income taxes paid byTop 1% 47.6 49.1 54.7 56.3 55.3 54.3 54.5 57.2 58.4 59.3 60.8 72.8 72.7 35.6 34.9 33.9 35.0 36.6 37.7 38.3 41.6 42.1 44.5 42.9 42.1 42.1 44.9 46.4 46.9 48.5 50.9 51.8 53.4 55.1 56.2 55.2 54,5 56.6 58.5 60.7 60.9 61.0 18.3 17.4 16.3 17.7 19.6 | 20.7 21.2 | 24.6 23.5 26.6 24.3 23.8 23,4 26.2 | 27.6 | 27.8 29.0 31.4 32.3 33.5 35.0 36.5 34.4 33.0 34.6 36.7 38.8 39.1 39.5 Share of indiv. income taxes paid byHighest Quintile 64.9 | 64.8 63.9 64.9 66.1 66.3 66.9 68.9 70.9 71.9 71.4 70.4 70.8 73.0 73.8 74.9 76.1 77.6 78.2 79.8 80.6 81.2 82.4 82.7 84.8 85.3 86.3 86.3 86.0 Share of indiv. income taxes paid byFourth Quintile 20.2 20.2 20.6 20.2 19.7 19.2 19.0 18.0 17.5 17.2 17.6 17.8 18.0 17.1 16.8 16.9 16.2 15.5 14.9 14.6 14.0 13,5 14.3 14.7 14.6 13.8 13.1 12.9 12.7 Share of indiv. income taxes paid byMiddle Quintile 10.7 10.8 10.9 10.6 10.2 10.1 9.9 9.2 8.7 8.5 8.9 8.9 9.0 8.4 8.1 8.1 7.7 7.3 7.2 6.4 6.1 5.7 5.3 5.4 4.7 4.7 4.4 4.4 4.6 Share of indiv. income taxes paid bySecond Quintile Share of indiv. income taxes paid byLowest Quintile 4.1 4.2 4.4 4.0 3.8 4.1 4.0 3.7 3.1 2.9 2.8 3.3 2.9 2.5 2.3 1.8 1.9 1.6 1.7 1.3 1.3 1.1 0.3 -0.2 -1.1 -0.9 -0.9 -0.8 -0.3 0.0 0.1 0.2 0.2 0.2 0.3 0.2 0.2 -0.3 -0.4 -0.7 -0.4 -0.8 -0.9 -1.0 -1.7 -2.0 -2.1 -2.0 -2.1 -1.9 -1.6 -2.3 -2.7 -3.0 -2.9 -2.9 -2.8 -3.0 percent share
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