5. In Freedonia, the tax brackets works as follows. On the rst 20,000 pesos of taxable...
5. In Freedonia, the tax brackets works as follows.
On the rst 20,000 pesos of taxable income, tax rate is 10%.
On the portion of income from 20,000 to 50,000 pesos, the tax rate is 25%.
On income above 50,000 pesos, the tax rate is 50%.
In addition, each family has a 12,000 pesos deduction, and each child can claim 2,000 pesos
of tax credit.
(a) Martin has a wife and a kid, and the family gross income is 50,000 pesos per year.
(i) What is the family's marginal tax rate?
(ii) How much tax does the family pay? What is its average tax rate?
(b) Diego has a wife and three kids, and the family gross income is 100,000 pesos per year.
(i) What is the family's marginal tax rate?
(ii) How much tax does the family pay? What is its average tax rate?
Show the detail of your computation.
6. Suppose that Freedonia decides to simplify its tax system (from that in question 5). Now
there is a at tax rate of 25%, and per family deduction is raised to 19,000 pesos (from 12,000
pesos), and there is no child tax credit anymore. Martin's and Diego's family situation as
well as their gross income is the same as in question 5.
(a) How much tax does Martin's family pay now? What is its average tax rate?
(b) How much tax does Diego's family pay now? What is its average tax rate?
(c) How much does the government total tax revenue from these two families dier from
that under the original tax system?
(d) Is the new system more progressive, more regressive, or neither comparing to the
original tax system in question 5? Explain. Note that you need to consider other
people in addition to those like Martine's and Diego's family, e.g., the very poor.
Show the detail of your computation.
Homework Answers
Add Answer to:
5. In Freedonia, the tax brackets works as follows.
On the rst 20,000 pesos of taxable...
Question 6. Question 5 for reference . Suppose that Freedonia decides to simplify its tax system...
Question 6. Question 5 for reference
. Suppose that Freedonia decides to simplify its tax system (from that in question 5. Now there is a flat tax rate of 25%, and per family deduction is raised to 19.000 pesos (from 12.000 pesos), and there is no child tax credit anymore. Martin's and Diego's family situation as well as their gross income is the same as in question 5. (a) How much tax does Martin's family pay now? What is its...
Econ Public Finance, please help! Question 2 (10 pts) The nation of Fishkasar has a tax rate of 5% on the first 20,000...
Econ Public Finance, please help!
Question 2 (10 pts) The nation of Fishkasar has a tax rate of 5% on the first 20,000 walops (the national currency) of taxable income, then 20% on the next 30,000 walops, then 50% on all taxable income above 50,000 walops. Fishkasar provides a 5,000-walop exemption per family member. a. Jamil's family has three members and earns 60,000 walops per year. Calculate the family's marginal and average tax rates. b. Boba's family has five members...
12. If the government follows an income tax system in which income up to $25,000 is...
12. If the government follows an income tax system in which income up to $25,000 is taxed 4%, income greater than $25,000 and less than or equal to $50,000 is taxed at a rate of 10% and income over $50,000 is taxed at a rate of 25%; then a family earning $60,000 will pay an average tax rate of (assumed there is no deductions or exemptions): 12.5% 15% 25% 10%
1. The Millers, a family of four (with two young child) filing a joint tax return,...
1. The Millers, a family of four (with two young child) filing a joint tax return, have the following information to prepare their federal income tax return for 2018: Total Income State and local income taxes State and local property tax Home mortgage interest Contribution to charities Interest on student loans Contribution to 401(k) retirement account: Contribution to individual retirement account: $120,000 $6,000 $6,000 $12,000 $4,000 $2,000 $8,000 $4,000 For tax year 2018: Standard deduction for a married couple: $24,000;...
10. In Swedagon nation, the tax system is as follows: income from $0 to $20,000, tax...
10. In Swedagon nation, the tax system is as follows: income from $0 to $20,000, tax rate is 25%; and income above $20,000 is taxed at 50%. What effective percentage of income does an individual pay in taxes under this tax system if that individual’s pre-tax income is $40,000? 25% 12.5% 125% 37.5%
A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: 1. What...
A company has $13,500,000 in taxable income. Consider the
following corporate marginal tax rates:
1. What is the marginal tax rate for the
company?
2. What is the total tax bill for the company, i.e., how
much does the company have to pay in taxes (in $)?
3. What is the company's average tax rate?
Intro A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: Tax rate 15% 25% 34% Taxable income ($) 0 50,000...
II. Monetary Policy and Explanation: ots. FEDERAL TAX SYSTEM. Tax 1. If the net profit from...
II. Monetary Policy and Explanation: ots. FEDERAL TAX SYSTEM. Tax 1. If the net profit from your business was $10,000 for this year and you added it to your personal taxable income of $135,000 for this year, according to the tax tables used in class, how much tax would you owe? a. Tax 1) Total Income (wages + capital gain profit from business + Interest income.) Exemption amount (Subtract from Total Income) Adjusted Gross Income (AGI) Family 1 (Does not...
For 2019 Annita has gross income of $100,000 and deduction of $160,000 for regular tax purposes....
For 2019 Annita has gross income of $100,000 and deduction of $160,000 for regular tax purposes. What are the tax consequences to Annita in the current year? Would the result have any impact on Annita’s tax liability in the prior year if it had taxable income in that year of $50,000? Suppose that for the following year Annita has taxable income from all activities in that year of 30,000. Assume the tax rate is a flat 21% of taxable income....
"Florida Citrus Inc. (FCI) estimates its taxable income at $7,100,000. Use the Corporate Tax Schedule, Table...
"Florida Citrus Inc. (FCI) estimates its taxable income at
$7,100,000. Use the Corporate Tax Schedule, Table 9.12, to
calculate how much FCI will pay in federal income taxes."
TABLE 9·12 Corporate Tax Schedule for 2015 Taxable Income (X) $0-$50,000 50,001-75,000 75,001-100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 18,333,334 and up Tax Rate 15% 25% 34% 34% + 5% 34% 35% 35% + 3% 35% Tax Computation Formula $0 + 0.15X 7,500 + 0.25(X - $50,000) 13,750 + 0.34(X - 75,000) 22,250 +...
For 2019 Bagco has gross income of $100,000 and deduction of $160,000 for regular tax purposes....
For 2019 Bagco has gross income of $100,000 and deduction of $160,000 for regular tax purposes. What are the tax consequences to Bagco in the current year CY? Would the result have any impact on Bagco’s tax liability in the prior year (PY) if it had taxable income in that year of $50,000 Suppose that for the following year (CY+1) Bagco has taxable income from all activities in that year of 30,000. Assume the tax rate is a flat 21%...
Question 6. Question 5 for reference
. Suppose that Freedonia decides to simplify its tax system (from that in question 5. Now there is a flat tax rate of 25%, and per family deduction is raised to 19.000 pesos (from 12.000 pesos), and there is no child tax credit anymore. Martin's and Diego's family situation as well as their gross income is the same as in question 5. (a) How much tax does Martin's family pay now? What is its...
Econ Public Finance, please help!
Question 2 (10 pts) The nation of Fishkasar has a tax rate of 5% on the first 20,000 walops (the national currency) of taxable income, then 20% on the next 30,000 walops, then 50% on all taxable income above 50,000 walops. Fishkasar provides a 5,000-walop exemption per family member. a. Jamil's family has three members and earns 60,000 walops per year. Calculate the family's marginal and average tax rates. b. Boba's family has five members...
1. The Millers, a family of four (with two young child) filing a joint tax return, have the following information to prepare their federal income tax return for 2018: Total Income State and local income taxes State and local property tax Home mortgage interest Contribution to charities Interest on student loans Contribution to 401(k) retirement account: Contribution to individual retirement account: $120,000 $6,000 $6,000 $12,000 $4,000 $2,000 $8,000 $4,000 For tax year 2018: Standard deduction for a married couple: $24,000;...
A company has $13,500,000 in taxable income. Consider the
following corporate marginal tax rates:
1. What is the marginal tax rate for the
company?
2. What is the total tax bill for the company, i.e., how
much does the company have to pay in taxes (in $)?
3. What is the company's average tax rate?
Intro A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: Tax rate 15% 25% 34% Taxable income ($) 0 50,000...
II. Monetary Policy and Explanation: ots. FEDERAL TAX SYSTEM. Tax 1. If the net profit from your business was $10,000 for this year and you added it to your personal taxable income of $135,000 for this year, according to the tax tables used in class, how much tax would you owe? a. Tax 1) Total Income (wages + capital gain profit from business + Interest income.) Exemption amount (Subtract from Total Income) Adjusted Gross Income (AGI) Family 1 (Does not...
"Florida Citrus Inc. (FCI) estimates its taxable income at
$7,100,000. Use the Corporate Tax Schedule, Table 9.12, to
calculate how much FCI will pay in federal income taxes."
TABLE 9·12 Corporate Tax Schedule for 2015 Taxable Income (X) $0-$50,000 50,001-75,000 75,001-100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 18,333,334 and up Tax Rate 15% 25% 34% 34% + 5% 34% 35% 35% + 3% 35% Tax Computation Formula $0 + 0.15X 7,500 + 0.25(X - $50,000) 13,750 + 0.34(X - 75,000) 22,250 +...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 53 seconds from now -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 48 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 5 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 5 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago