Song earns $117,500 taxable income as an interior designer and is taxed at an average rate of 15 percent ($17,625 of tax). If congress increases the income tax rate such that songs average tax rate increases from 15 percent to 20 percent, how much more income tax will she pay assuming that the income effect is descriptive?

Song earns $117,500 taxable income as an interior designer and is taxed at an average rate of 15 percent ($17,625 of tax). If congress increases the income tax rate such that songs average tax rate increases from 15 percent to 20 percent, how much more income tax will she pay assuming that the income effect is descriptive?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 34P: How much taxable income should each of the following taxpayers report? a. Kimo builds custom...

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