1. Calculate the following taxpayers tax liabilities

1. 1. A single taxpayer had taxable income of $76,500
2. A Head of household taxpayer had taxable income of $76,500
3. A married couple (married filing jointly) had taxable income of $76,500

2. George, a single taxpayer, earns $80,000 in taxable income and $6,000 in interest from an investment in city of Normal Bonds. What is his effective tax rate (round to two decimal places)? What is his average tax rate?

3. Jang, a resident of Washington (which imposes a general sales tax), goes to Oregon (which does not impose a general sales tax) to purchase his automobile. Will Jang successfully avoid the Washington sales tax? Explain.

4. Distinguish between an estate tax and an inheritance tax.

a. Do some states impose both? Neither?

b. Which, if either, does the Federal government impose?