ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 4. Taxes paid for a given income level Antonio is getting ready to do his taxes. He is single and lives in Chicago. Antonio earned $110,000 in 2020. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2020. On Annual Taxable Income... Up to $9,875 From $9,875 to $40,125 From $40,125 to $85,525 From $85,525 to $163,300 From $163,300 to $207,500 From $207,500 to $518,400 The Tax Rate Is... (Percent) 10 12 Antonio calculates that he owes approximately 17 20 23 30 Based on the IRS table, Antonio calculates that his marginal tax rate is when his annual income is $110,000. ▼ in income taxes for 2020. Antonio then calculates that his average tax rate is approximately for 2020. ▼, based on the annual income level and the amount of taxes he owes After figuring out what he owes in taxes in 2020, Antonio decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $3,000 of taxable income from the federal…arrow_forwardI need the other side of the chart for regressive taxarrow_forwardTrue or False: A progressive tax system is one in which the average tax rate increases as income increases. Don't use Aiarrow_forward
- 8. Explain why each of the following taxes is progressive or regressive. a. $1 per pack federal excise tax on cigarettes b. The federal individual income tax d. The federal payroll tax.arrow_forwardAssume a state's general sales tax is 6%; this is an example of a _______________ income tax. A. Progressive B. Proportional C. Regressivearrow_forward7arrow_forward
- A government replaces progressive taxes with regressive taxes. What is the likely outcome? a. Distribution of Income more even; Marginal Tax Rate decrease b. Distribution of Income more uneven; Marginal Tax Rate increase c. Distribution of Income more uneven; Marginal Tax Rate decrease d. Distribution of Income more even; Marginal Tax Rate increasearrow_forward24. Impact on Taxes. Lawrence has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $5,000 tax deduction. How will this oversight affect his taxes? =Lawrence paid $1200 excess tax because Lawrence neglected $ 5000 tax deduction 25. Impact on Taxes. From question 24, if Lawrence had forgotten a $5000 tax credit (instead of a $5000 tax deduction), how would his taxes be affected?arrow_forward5arrow_forward
- Find the missing values for [ a ] through [ j ] below. [ j ] Which tax structure above is progressive? Which tax structure above is regressive?arrow_forward12. Study Questions and Problems #12 Consider the first three columns of the following table, which outline a hypothetical Negative Income Tax plan. Complete the last column of the table. Family Income Negative Tax Positive Tax Total After-Tax Income $0 $10,000 $0 S 5,000 $7,500 0 S 10,000 $5,000 0 S 15,000 $2,500 0 S 20,000 0 0 S 25,000 0 -$2,500 S 30,000 -$5,000 S 35,000 -$7,500 Sarrow_forwardWhen Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is A. 25 percent; 25 percent B. 40 percent; 25 percent C. 40 percent; 40 percent D. 25 percent; 40 percentarrow_forward
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