Proposed Regressive Plan Calculate the tax for $95,000. For example, $10.000x40%-$4.000 in tax. Calculate the tax for $25,000. For example, $10,000x40%=$4,000 in tax. Show your work!! 2500 Show your work!! 2500 10% on income up to $25,000 20% on income between $25,000 and $34,000 25% on income between $34,000 and $44,000 1800 2500 30% on income between $44,000 and $80,000 40% on taxable income over $80,000 TOTAL TAX PAID (sum of all 23000 00801 6000 25000 rows): Part II: Reflection Questions Directions: Use the information from your charts to answer these questions 27. What are the main differences between the flat. regressive, and progressive tax plans? 28. Under which plan would a person earning $25.000 pay the most in taxes? 29. Under which plan would a person earning $95.000 pay the most in taxes? 30. Under which plan would a person earning $25,000 pay the least in taxes? 31. Under which plan would a person earning $95.000 pay the least in taxes? 32. Of the three types of tax plans (proportional regressive. progressive) which is most fair to someone earning $25.000 per year? 33. Of the three types of tax plans (proportional regressive. progressive) which is most fair to someone earning 595.000 per year?

Proposed Regressive Plan Calculate the tax for $95,000. For example, $10.000x40%-$4.000 in tax. Calculate the tax for $25,000. For example, $10,000x40%=$4,000 in tax. Show your work!! 2500 Show your work!! 2500 10% on income up to $25,000 20% on income between $25,000 and $34,000 25% on income between $34,000 and $44,000 1800 2500 30% on income between $44,000 and $80,000 40% on taxable income over $80,000 TOTAL TAX PAID (sum of all 23000 00801 6000 25000 rows): Part II: Reflection Questions Directions: Use the information from your charts to answer these questions 27. What are the main differences between the flat. regressive, and progressive tax plans? 28. Under which plan would a person earning $25.000 pay the most in taxes? 29. Under which plan would a person earning $95.000 pay the most in taxes? 30. Under which plan would a person earning $25,000 pay the least in taxes? 31. Under which plan would a person earning $95.000 pay the least in taxes? 32. Of the three types of tax plans (proportional regressive. progressive) which is most fair to someone earning $25.000 per year? 33. Of the three types of tax plans (proportional regressive. progressive) which is most fair to someone earning 595.000 per year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Proposed Regressive Plan (Regressive Tax) Calculate the tax for $95,000 . For example, $10,000x40%=$4,000 in tax. Show your work!! 40% on income up to $25,000 30% on income between $25,000 and $34,000 25% on income between $34,000 and $44,000 20% on income between $44,000 and $80,000 10% on taxable income over $80,000 TOTAL TAX PAID (sum of all rows):
Attached is question diagram, USE EXCEL AS ITS REQUIRED Question 9. What is the net present worth of machine B after tax over 3 years? Pick the correct answer. $6,394 $6,233 $5,562 $7,070
Consider a tax system where the first $40,000 of income is tax free, the next $40,000 is taxed at 10%, and all income above $80,000 is taxed at 20%. 1. Graph the total tax as a function of income. Be sure to label carefully. Тах Income 2. Graph the ATR(average) and MTR(marginal) rate. Label carefully. MTR, ATR 0.40 0.20 0.00 Income 3. Calculate the tax for individuals that earn: $20,000 Tax = ATR = %, MTR = $40,000 Tax = ATR = MTR = $60,000 Tax = ATR = MTR = $80,000 Tax = ATR = MTR = $100,000 Tax = ATR = MTR =
Suppose you earn $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $30,000. The second tax bracket, which taxes at 25 percent, ranges from $30,001 to $120,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number. %24
Based on your yearly income above, calculate the amount of tax each income bracket would pay under a regressive tax plan. Each row up to the total income amount should be filled in. For an example of a completed chart, go to Page 4 of Lesson 05.03 : Sharing with Uncle Sam.Proposed Regressive Plan Calculate the tax for $95,000. For example, $10,000x40%=$4,000 in tax. Show your work!! Calculate the tax for $25,000. For example, $10,000x40%=$4,000 in tax. Show your work!!40% on income up to $25,000 30% on income between $25,000 and $34,000 25% on income between $34,000 and $44,000 20% on income between $44,000 and $80,000 10% on taxable income over $80,000 TOTAL TAX PAID (sum of all rows):
Instructions Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax bracket. Answer the following questions: 1. What is the cash flow? 2. Now assume amortization is $50,000. Does the cash flow change? If so, why and by how much? Requirements Your submission should include a single Microsoft Word document or pdf containing your response to the discussion question. S
a. Fill in the following table assuming MACRS depreciation rates (10 points) Year 0 1 2 3 4 5 6 Pretax income MACRS Taxable Depreciation income Tax owed After tax income Inflation adjustment factor Real after tax income b. If MARR = 18%, should you purchase this system based on your real after-tax income? Why or why not? (5 points)
QUESTION 2 1. Consider the following version of the earned income tax credit (EITC). All persons who earn less than $20,000 are given a wage subsidy of $0.50 for each dollar worked. The maximum benefit is therefore $10,000. All persons who earn between $20,000 and $30,000 are paid the maximum benefit of $10,000. This is the income disregard region. The phaseout occurs in the income range from $30,000 to $50,000. In this range the maximum benefit $10,000 is cut by $0.50 for each dollar earned. For example, a person who earns $30,001 will get paid $10,000 -$0.50 = $9,999.50. At an income of $50,000 the program has been totally phased out. Now focus on a person initially working and earning $15,000 before the plan is introduced. Consider the net effect of this program (i.e, we are talking in this question about BOTH the income and substitution effects) for a person earning this amount. The program will: a. have no effect on time spent working b. cause time spent working to rise c. cause…
1. Show that a 20% retail sales tax is regressive by putting numbers in the following table. Income Consumption Tax Saving Tax /Income $ 24,000 $120,000 $30,000
Problem 4 Suppose tax = 0%. Consider an EITC program in which the maximum credit is $4000. An individual who has earned income between $10,000 and $15,000 receives the maximum credit (i.e.- someone who has earned income of $10,000 will have total income of $14,000 because of the tax credit). An individual who has earned income of $19,000 has total income of $19,250. What is the implicit tax rate that the individual who has earned income of $19,000 faces? (Express your answer as a percentage. Don't enter a percentage sign. Round your final answer to four decimal places if necessary. For example, if the tax rate is 99.9%, enter your answer as 99.9.)
Please help me answer it as fast as you can! suppose company has $13 in taxable income after consideration $6 of tax privileges (so, companyis tax sheild = $6). If alternative minimum tax (AMT) is 20%, calculate the minimum tax amount that company should pay.
14. Leslie Inc. has correctly determined the following information related to operations for 2018: Revenue from sales Expenses Income before income taxes P7,000,000 4,000,000 P3,000,000 In reviewing the records, you discovered the following items: During 2018, the company discovered an error in depreciation in 2017. The correction of this error, which has not been recorded, will result in an increase in depreciation for 2017 of P200,000. During 2018, the company sustained a loss of P400,000 because of flood, which destroyed its inventory. The company charged retained earnings and credited inventory for P400,000.