DOES IT MAKE SENSE? Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning. Assume 2017 tax rates and policies.

11. We're both single with no children and both have the same total (gross) income, so we must both pay the same amount in taxes. 12. The $1000 child tax credit sounds like a good idea, but it doesn't help me because I take the standard deduction rather than itemizing deductions.

13. When I calculated carefully, I found that it was cheaper for me to buy a house than to continue renting, even though my rent payments were lower than my new mortgage payments.

14. My husband and I paid $5000 in mortgage interest this year, but we did not get a tax benefit from it because we took the standard deduction.

15. Bob and Sue were planning to get married in December of this year, but they postponed their wedding until January when they found it would save them money in taxes.

16. Regina's income last year was $10 million, all from long- term capital gains. Phil had the same income from his salary (wages) as a professional athlete. Despite their equal in- comes, Phil paid nearly twice as much in federal taxes.

17. I'm self-employed and earned a total of only $10,000 last year, yet I still had to pay 15.3% of my income in taxes.

18. I started contributing $400 each month to my tax-deferred savings plan, but my take-home pay declined by only $300.

Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning. Assume 2017 tax rates and policies. 11. We're both single with no children and both have the same total (gross) income, so we must both pay the same amount in taxes. 12. The $1000 child tax credit sounds like a good idea, but it doesn't help me because 1 take the standard deduction rather than itemizing deductions. 13. When I calculated carefully, I found that it was cheaper for me to buy a house than to continue renting, even though my rent payments were lower than my new mortgage payments. 14. My husband and I paid $5000 in mortgage interest this year, but we did not get a tax benefit from it because we took the standard deduction. 15. Bob and Sue were planning to get married in December of this year, but they postponed their wedding until January when they found it would save them money in taxes. 16. Regina's income last year was $10 million, all from longterm capital gains. Phil had the same income from his salary (wages) as a professional athlete. Despite their equal incomes, Phil paid nearly twice as much in federal taxes. 17. Im self-employed and earned a total of only $10,000 last year, yet 1 still had to pay 15.3% of my income in taxes. 18. I started contributing $400 each month to my tax-deferred savings plan, but my take-home pay declined by only $300. BY THE WAY Congress can change the tax laws at any time, and when this text was written in mid-2017, both Congress and the President had proposed significant changes to the federal tax system, some of which may be implemented by the time you are reading this chapter. 2017 Marginal Tax Rates, Standard Deductions, and Exemptions* "This table ignores (6) exemption and deduction phase-outs that apply to high-income taxpayers (ii) the alternative minimum tax (AMT) that affects many middle-and high-income taxpayers; (iii) potential changes in tax law made after this text was printed that may have changed the values given in this table for 2017 . "Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% marginal rate affects income starting at $9325, which is where the 10% rate leaves off, and continuing up to $37,950