Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, 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? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>
Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, 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? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 3P
Related questions
Question
hr.2
Transcribed Image Text:Taxable Income and Total Tax Liability are in thousands
Iten
Number of returns
Taxable income
39,273,482
Ranges of Adjusted Gross
$30,000 to under
$50,000
Under $15,000
$15,000 to under
$30,000
27,479,909
Total tax liability
Average tax rate
$ 6,942,229
$ 781,332
11.25%
$ 192,991,768
$ 14,879,011
7.71%
"The average tax rate is total tax liability divided by taxable income.
Required:
27,613,637
$ 604,739,808
$ 50,590,871
8.37%
Income
$50,000 to under
$100,000
35,461,449
$ 1,754,582,416)
$187,033,777
10.66%
$100,000 to under
$200.000
21,933,838
$ 2,305,375,171
$318,659,367
a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, 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?
13.82%
$200,000 or more
9,584,402
$ 3,866,022,623
$ 907,242,543
23.47%
Required A Required B
If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of
tax liability for 2021 for all taxpayers.
Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number.
Amount of tax liability
Required>
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