Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Joe was single in the year 2016 with a taxable income of $250,000. We learn that Joe actually made $500,000, but his taxable income was only $250,000 because of various deductions allowed by the system in 2016. Proponents of the flat tax say that many of these deductions should be eliminated, so the 17% flat tax should be applied to Joe's entire $500,000. How much income would Joe have to make for the 17% flat tax to equal the amount he pays in the year 2016 with a taxable income of $250,000? (Refer to the 2016 Tax Table for Singles for tax rates. Round your answer to the nearest cent.)
Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Joe was single in the year 2016 with a taxable income of $250,000.
We learn that Joe actually made $500,000, but his taxable income was only $250,000 because of various deductions allowed by the system in 2016. Proponents of the flat tax say that many of these deductions should be eliminated, so the 17% flat tax should be applied to Joe's entire $500,000.
How much income would Joe have to make for the 17% flat tax to equal the amount he pays in the year 2016 with a taxable income of $250,000? (Refer to the 2016 Tax Table for Singles for tax rates. Round your answer to the nearest cent.)
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