Problem 1-40 (LO 1-1)

Taxable Income and Total Tax Liability are in thousands.

Ranges of Adjusted Gross Income
Item	Under $15,000				$15,000 to under $30,000				$30,000 to under $50,000				$50,000 to under $100,000				$100,000 to under $200,000				$200,000 or more
Number of returns		36,181,194				30,321,571				26,110,889				32,327,738				17,534,600				6,210,595
Taxable income	$	22,125,213			$	213,795,812			$	553,217,626			$	1,558,146,414			$	1,787,498,797			$	2,784,889,814
Total tax liability	$	1,871,128			$	18,569,250			$	56,359,918			$	201,900,692			$	297,957,670			$	781,434,510
Average tax rate		8.46	%			8.69	%			10.19	%			12.96	%			16.67	%			28.06	%

a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17%, calculate the amount of tax liability for 2014 for all taxpayers. (Consider intermediate computations in thousands of dollars, rounded to the nearest whole number. Enter your final answer in dollars and not in thousands of dollars.)