Taxable Income and Total Tax Liability are in thousands. Ranges of Adjusted Gross Income Item Under $15,000
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Question:
Taxable Income and Total Tax Liability are in thousands.
| Ranges of Adjusted Gross Income | ||||||
|---|---|---|---|---|---|---|
| Item | Under $15,000 | $15,000 to under $30,000 | $30,000 to under $50,000 | $50,000 to under $100,000 | $100,000 to under $200,000 | $200,000 or more |
| Number of returns | 39,282,202 | 27,721,909 | 28,658,637 | 37,716,449 | 24,188,838 | 11,839,402 |
| Taxable income | $ 6,951,029 | $ 193,233,768 | $ 605,784,808 | $ 1,756,837,416 | $ 2,307,630,171 | $ 3,868,277,623 |
| Total tax liability | $ 790,132 | $ 15,121,011 | $ 51,635,871 | $ 189,288,777 | $ 320,914,367 | $ 909,497,543 |
| Average tax rate* | 11.37% | 7.83% | 8.52% | 10.77% | 13.91% | 23.51% |
*The average tax rate is total tax liability divided by taxable income.
Required:
- If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers.
- What is the amount and nature of difference from actual tax liability specified in the above table?
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