7. 13.7 Sameh, a U.S. citizen and an engineer living outside the country while working for GE International, Inc., files his U.S. income tax return as “Unmarried.” This last year, his salary was $103,000 and his retirement investment portfolio provided net supplemental dividends of $10,500.

(a) Use Table 13.2 rates to determine his federal taxes, assuming no state or other income taxes. Only a $12,000 standard deduction can be taken in filing his U.S. tax return.

(b) If all investment dividends are directly reinvested (meaning he receives no actual cash proceeds, but must pay taxes on these earnings), Sameh receives only his salary. What percent of his salary is taken in paying U.S. federal taxes, though he lives outside the country?