Let's say the following tax cut was applied to U.S. taxpayers who earned up to $55,000 per year. On average, these taxpayers retained 5% more of their income than before the cuts. The tax cut also gave the same taxpayers a separate $500 credit on their federal tax return. This amounted to a person who earned $55,000 per year receiving $3,250 extra due to federal tax cuts. This extra money represents what percent of the typical person’s salary? Round to the nearest tenth of a percent.

Let's say the following tax cut was applied to U.S. taxpayers who earned up to $55,000 per year. On average, these taxpayers retained 5% more of their income than before the cuts. The tax cut also gave the same taxpayers a separate $500 credit on their federal tax return. This amounted to a person who earned $55,000 per year receiving $3,250 extra due to federal tax cuts. This extra money represents what percent of the typical person’s salary? Round to the nearest tenth of a percent.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 31P

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