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		33,998,665				29,548,721				27,127,608				34,537,027				20,094,853				7,788,785
Taxable income	$	21,439,540			$	213,668,669			$	578,082,715			$	1,661,992,914			$	2,055,707,167			$	3,408,931,866
Total tax liability	$	1,891,136			$	18,881,170			$	59,565,261			$	218,856,282			$	343,280,695			$	945,200,723
Average tax rate*		8.82	%			8.84	%			10.30	%			13.17	%			16.70	%			27.73	%

*The average tax rate is total tax liability divided by taxable income.

Required:

1. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17%, calculate the amount of tax liability for 2017 for all taxpayers.
2. What is the amount and nature of difference from actual tax liability specified in the above table?

If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17%, calculate the amount of tax liability for 2017 for all taxpayers. (Consider intermediate computations in thousands of dollars, rounded to the nearest whole number. Enter your final answer in dollars and not in thousands of dollars.)

What is the amount and nature of difference from actual tax liability specified in the above table? (Input your answer as a positive number. Consider intermediate computations in thousands of dollars, rounded to the nearest whole number. Enter your final answer in dollars and not in thousands of dollars.)

Answer rating: 100% (QA)

find attached table which shows calculation of tax liability at proportiona... View the full answer