Taxable Income and Total Tax Liability are in thousands. $50,000 to under $100,000 $100,000 to under $200,000 Ranges of Adjusted Gross Income $15,000 to under $30,000 27,369,909 $ 192,881,768 $30,000 to under $50,000 27,138,637 $ 684,264,888 Book Item Number of returns Taxable income Under $15,000 39,269,482 $ 6,938,229 Total tax liability Average tax rate* $ 777,332 11.20% $ 14,769,011 7.66% Print *The average tax rate is total tax liability divided by taxable income. Required: rences $ 58,115,871 8.29% 34,436,449 $ 1,753,557,416 $186,008,777 18.61% 20,908,838 $ 2,304,350,171 $ 317,634,367 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? Required A Required B 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. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required A Required B > 13.78% $200,000 or more 8,559,402 $ 3,864,997,623 $ 906,217,543 23.45%
Taxable Income and Total Tax Liability are in thousands. $50,000 to under $100,000 $100,000 to under $200,000 Ranges of Adjusted Gross Income $15,000 to under $30,000 27,369,909 $ 192,881,768 $30,000 to under $50,000 27,138,637 $ 684,264,888 Book Item Number of returns Taxable income Under $15,000 39,269,482 $ 6,938,229 Total tax liability Average tax rate* $ 777,332 11.20% $ 14,769,011 7.66% Print *The average tax rate is total tax liability divided by taxable income. Required: rences $ 58,115,871 8.29% 34,436,449 $ 1,753,557,416 $186,008,777 18.61% 20,908,838 $ 2,304,350,171 $ 317,634,367 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? Required A Required B 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. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required A Required B > 13.78% $200,000 or more 8,559,402 $ 3,864,997,623 $ 906,217,543 23.45%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:Taxable Income and Total Tax Liability are in thousands.
$50,000 to under
$100,000
$100,000 to under
$200,000
Ranges of Adjusted Gross Income
$15,000 to under
$30,000
27,369,909
$ 192,881,768
$30,000 to under
$50,000
27,138,637
$ 684,264,888
Book
Item
Number of returns
Taxable income
Under $15,000
39,269,482
$ 6,938,229
Total tax liability
Average tax rate*
$ 777,332
11.20%
$ 14,769,011
7.66%
Print
*The average tax rate is total tax liability divided by taxable income.
Required:
rences
$ 58,115,871
8.29%
34,436,449
$ 1,753,557,416
$186,008,777
18.61%
20,908,838
$ 2,304,350,171
$ 317,634,367
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?
Required A Required B
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.
Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number.
Amount of tax liability
Required A
Required B >
13.78%
$200,000 or more
8,559,402
$ 3,864,997,623
$ 906,217,543
23.45%
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