4. Taxes paid for a given income level Megan is getting ready to do her taxes, She is single and lives in Dallas. Megan earmed 5250,000 in 2011. She reviews the following table, which shows the IRs tax rates for a single taxpayer in 2011. Hased on the 1RS table, Megan calculates that her marginal tax rate is when her annual income is $250,000 Megan calculates that she owos in income taxes for 2011, Megan then calculates that her average tax rate is based on the annualincome level and the amount of taxes she owes for 2011. After fogring out what she owes in taxes in 2011. Megan decides to ask an accountant for tax advice. The accountant ciaims that he has foumd a loga! way to sheiter 54,000 of taxable income trom the federal government. Based on the IRS table, Megan calculates that her marginal tax rate is When her annual income is $250,000. Megan caiculates that she owes in income taxes for 2011. Megan then calculates that her average tax rate is , based on the annual income level and the amount of taxes she owes for 2011. After figuring out what she owes in taxes in 2011, Megan decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to sheiter $4,000 of taxable income from the federal government. The maximum amount that Megan is wiling to pay to learn this strategy and reduce her taxable income by $4,000 is - (Hint: Shestering some income means finding a legal way to avoid being charged income tax on that income, For example, someone who has 350,000 in income and sheiters $10,000 pays income tax on only $40,000. The first table that follows shows government expenditures as a percentage of GDP for selected years. For the same years, the first table also shows different categories of federal expenditures as percentages of total federal government expenditures. The second table-shows government tax revenue as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages of total federal tax receipts. (Source: "U.S. Government Printing Orfice.") "Including transportation, agriculture, veterans' benefits, international affairs, housing, and so on. "Induding transportation, agriculture, veterans' benefits, international affairs, housing, and so on. Which of the following statements are true? Check all that apply. Between 1970 and 2011 , national defense expenditures as a percentage of the federal budget grew, while income security expenditures as a percentage of the federal budget declined. Federal taxes as a percentage of GDP were lower in 2011 than they were in 1970. Total state and local government expenditures represented less than 5% of GDP in 2011. Between 1950 and 2011, total government expenditures (federal, state, and local combined) grew from about one-fourth of GDP to more than one-third of GDP. Based on the IRS table, Megan calculates that her marginal tax rate is when her annual income is $250,000. Megan calculates that she owes Megan then calculates that her average tax rate is After figuring out what she owes in taxes in 2011, Megan decldes to as 28% ountant for tax advice. The accountant claims that he has found a legal way to sheiter $4,000 of taxable income from the federal government. The maximum amount that Megan is willing to pay to leam this strated 35%-duce her taxable income by 54,000 is (Hint: Sheitering some income means finding a legal way to avoid being charged incame tax on that income. For example, someone who has $50,000 in income and shelters $10,000 pays income tax on only $40,000
