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 $300,000. We learn that Joe actually made $600,000, but his taxable income was only $300,000 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 $600,000. What would Joe's tax be under the 17% flat tax?

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 $300,000. We learn that Joe actually made $600,000, but his taxable income was only $300,000 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 $600,000. What would Joe's tax be under the 17% flat tax?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 44P

See similar textbooks

Similar questions

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 Alice was single in the year 2016 with a taxable income of $32,000. If the 17% flat tax proposed by Mr. Forbes had been in effect in 2016, what would Alice's tax have been?
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 Alice was single in the year 2016 with a taxable income of $40,000.Use the 2016 Tax Table for Singles to find Alice's tax under the current laws.
What was Alice's tax? (Enter your answer to the nearest cent. Hint: Use the 2020 Tax Table.) Alice's tax was $
I am stuck on a few questions this one is: This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,900. Last year, his total tax liability was $15,600. He estimates that his tax withholding from his employer will be $8,370 How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Increase in withholding Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent I have been trying to figure this out for days now i need help
Michel has heard of some Canadians that are millionaires with their TFSA’s. If that were the case and they withdrew $1 million dollars from their TFSA account in 2023, how much tax would they pay on the withdrawn funds if they were in a 53.31% marginal tax bracket? Tax calculation on $1 million TFSA withdrawal:
Hello, Need help on a tax question. I am suppose to use a California 540. Here is the info: California 2020 tax return Jimmy made $23,400 in wages and $250 is withheld, His spouse Laura made $56,200 in wages and had $6900 withheld, they don't have any dependents and would use the standard deduction. What is their refund or balance due?
The class is Income Tax Accounting. I can't seem to figure out the solution to the following: Chuck, a single taxpayer, earns $87,500 in taxable income and $2,500 in interest from an investment in City of Heflin bonds. What is his marginal rate if, instead, he had $5,000 of additional deductions? Based on the attached chart, I keep coming up with the incorrect percentage. I want to say that it's because of the 2 different tax rate (22% and 24%)
Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.
Justin Timberlake, a single taxpayer, earns $78, 200 in taxable income and $13,600 in interest from an investment in City of Los Angeles bonds. (Use the U.S. tax rate schedule.) Required: If Justin earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $40,000 of additional deductions?
Troy graduated in civil engineering from Concordia two years ago and decided to work in the remote area of northern Quebec. He is making great money and saving it all. What is Troy’s average rate of tax if in 2021 he paid taxes of $58,232.74 on his gross income earned of $135,000? (ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings) 43.14% 33.29% 49.97% 29.35% 38.09%
Troy graduated in civil engineering from Concordia two years ago and decided to work in the remote area of northern Quebec. He is making great money and saving it all. What is Troy's average rate of tax if in 2021 he paid taxes of $58,232.74 on his gross income earned of $135,000? (ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings) A 43.14% B 38.09% C 49.97% D 33.29% E 29.35%