In a hypothetical economy, Clancy earns $37,000, Eileen earns $74,000, and Hubert earns $111,000 in annual income. The following table shows theannual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $37,000, owes $9,250 in taxes.Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annualincome of $37,000, $74,000, and $111,000, respectively.Taxable Income Tax LiabilityAverage Tax RateTaxable Income(Dollars)(Dollars)(Percent)Clancy37,0009,250Eileen74,00011,100Hubert111,00011,100The income tax system for this country is

Average tax rate=Tax Liability*100/Taxable Income Average Tax Rate for clancy =9250/37000=25%Average…

Answered: In a hypothetical economy, Clancy earns…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter11: Fiscal Policy And The Federal Budget

Section: Chapter Questions

Problem 5WNG

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In a hypothetical economy, Shen earns $38,000, Valerie earns $76,000, and Antonio earns $114,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Shen, who earns $38,000, owes $12,540 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Shen, Valerie, and Antonio with an annual income of $ 38,000, $76,000, and $114,000, respectively. Taxable Income Taxable Income Tax Liability Average Tax Rate (Dollars) (Dollars) (Percent) Shen 38,000 12,540 Valerie 76,000 21,280 Antonio 114, 000 26, 220 The income tax system for this country is .
Ray earns an income of $250,000 per year in Country X. Suppose for the year 2014 there is a proportional tax rate of 22%. Also suppose for the year 2015 that the country follows the federal income tax bracket, as shown below. What will be the change in the direction and the amount of income tax paid by Ray? Taxable income between $0 and $9,225 $9,226 and $37,450 $37,451 and $90,750 $90,751 and $189,300 $189,301 and $411,500 Federal income tax bracket 10 percent 15 percent 25 percent 28 percent 33 percent $411,501 and $413,200 35 percent There will be $413,201 and above 39.6 percent ▾ in the income tax paid by Ray in the year 2015 as compared to the year 2014 by $ (Round your answer to two decimal places.)
Use the below table to calculate the amount of federal income tax that Kristen should report if she earned a taxable income of $87,011 in 2017? Federal Tax Rates for 2017 15% on the first $44,784 of taxable income, plus 19% on the next $45,594 of taxable income, plus 26.5% on the next $50,628 of taxable income, plus 32% on any further taxable income Income tax = $ hs
Suppose Sam has a total taxable income of $40,000, and he must pay $3,600 in taxes for clothing purchased this year. Teresa has a total taxable income of $60,000. The average tax rate for Sam is %. Based on Teresa's taxable income and the average tax rate you found for Sam in the prior question, calculate the minimum amount of tax Teresa must pay to achieve each tax structure listed in the following table. Type of Tax Structure Progressive Proportional Regressive Tax Needed to Achieve Tax Structure (Dollars)
The government implements a negative Income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for payments of 50%. Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income above $10,800 would pay a positive tax.) Family Income Negative Tax (Dollars) (Dollars) 0 2,800 4,800 6,800 8,800 10,800 Total After-Tax Income (Dollars)
Suppose that Darnell is preparing to file his taxes. He is single and currently lives in San Diego. Darnell earned $60,000 in taxable income in 2022. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 Darnell calculates that he owes 12.0 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Darnell calculates that his marginal tax rate is in income taxes for 2022. Darnell then calculates that his average tax rate is when his annual taxable income is $60,000. based on the annual income level and the amount of taxes he owes for 2022.
Consider the following hypothetical income tax brackets for a married couple. Assume for simplicity there are no exomptions or deductions Income $0-520,000 $20,000-$50,000 $50,000-$100,000 Over $100,000 Tax Rate 10% 20 35 50 Suppose the couple's income is $90,000. What is the couple's marginal tax rate? The couple's marginal tax rate is percent. (Enter your response as an integer.)
Assume for the following scenario that there is a 10% sales tax on gasoline. Gasoline Expenditures Total Tax Due Name (Dollars) (Dollars) Determine the amount of money each individual in the following table spends on gasoline taxes and their average tax rate. Total Taxable Income Average Tax Rate (Percent) (Dollars) Tim 10,000 10,000 Brian 40,000 32,000 Crystal 55,000 38,500 Hilary 85,000 51,000 Given the information in the previous table, sales tax on gasoline is because the average tax rate as income rises.
Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in the table. Income range $0-$20,000 $20,001-S39,000 $39,001-$70,000 $70,001+ Tax rate 0% 31% AD% 50% Use the table to calculate the average tax rate and marginal tax rate for each of the families. Where applicable, round your answer to the nearest whole number Byrne family Income = $25,000 Average tax rate % Marginal tax rate Smith family Income -$48,000 Average tax rate % Marginal tax rate Washington family Income = $62,000 Average tax rate % Marginal tax rate: Lee family Income = $123,000 Average tax rate % Marginal tax rate:
Consider an economy in which individuals choose between work time and leisure time. They spend all of their wages from work hours on consumption goods. Suppose that the government introduces an ad valorem tax of 45 percent imposed on all consumption goods and on leisure time. In the case of consumption, the tax applies to the expenditure amount. In the case of leisure time, the tax applies to the value of leisure time assessed at the individual's hourly wage from labour. What income tax rate is equivalent to this tax on consumption and leisure? [NOTE: If necessary, please round your answer to the nearest percent. Enter the whole number corresponding to the percentage rate. Do not enter the percent sign. For example, if your answer is 12 percent, you should enter 12 in the answer space, not 0.12.]
Assume that Turkey has s a tax rate of 15% on the first 15,000 TRY of taxable income, then 25% on the next 20,000 TRY, then 35% on the next 30,000 TRY, and a tax rate of 40% for all taxable income above 65,000 TRY. Suppose that Turkey provides a 4,000 TRY exemption per child.Hasan has 2 children, and he earns 82,000 TRY in a year.a) Calculate total tax payments of Hasan.b) Calculate average tax rate for Hasan.
Marissa just got hired at a new job for an annual salary of $112,200. After the standard deduction, her taxable income will be $100,000. Use the marginal tax rates shown in the table to calculate how much she will owe in income taxes if she has no other income and no additional deductions. 2019 Tax Rate Schedule for Single People For taxable income over... ...but not over... ...the marginal tax rate is: $0 $9,700 10% $9,700 $39,475 12% $39,475 $84,200 22% $84,200 $160,725 24% $160,725 $204,100 32% $204,100 $510,300 35% $510,300 - 37% a. Marissa will pay $ in income taxes. b. What share of her income would she be paying in taxes? %

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