Suppose the us has a proportional income tax system the


Suppose the U.S. has a proportional income tax system. The flat rate is 15%, but a taxpayer's first $25,000 is exempt from federal tax. Therefore, if Jim made a gross income of $80,000 las year, what would be his tax liability? Also, if Jim paid $9,250 in taxes throughout the year, what will be his refund/payment when he reconciles his taxes on April 15?

  1. Liability of $8,250; payment of 1,000

  2. Liability of $12,000; refund of 2,750

  3. Liability of $12,000; payment of 2,750

  4. Liability of $8,250; refund of 1,000

Solution Preview :

Prepared by a verified Expert
Business Management: Suppose the us has a proportional income tax system the
Reference No:- TGS01492699

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)