Song earns $155,000 taxable income as an interior designer and is taxed at an average rate of 30 percent (i.e., $46,500 of tax).

a.

If Congress increases the income tax rate such that Songs average tax rate increases from 30 percent to 40 percent, how much more income tax will she pay assuming that the income effect is descriptive?(Round your intermediate calculations and final answer to 2 decimal places.)

Congress would like to increase tax revenues by 13.5 percent. Assume that the average taxpayer in the United States earns $64,000 and pays an average tax rate of 20 percent.

a.

If the income effect is in effect for all taxpayers, what average tax rate will result in a 13.5 percent increase in tax revenues? What is average rate ? % Molto Stancha Corporation had zero earnings this fiscal year in fact they lost money. Must they file a tax return? 3. Paula could not reach an agreement with the IRS at her appeals conference and has just received a 90-day letter. If she wants to litigate the issue but does not have sufficient cash to pay the proposed deficiency, what is her best court choice? 1. US District Court 2. US tax court 3. US court of federal claims 4. US supreme court 4. Juanita, a Texas resident (5th Circuit), is researching a tax question and finds a 5th Circuit case ruling that is favorable and a 9th Circuit case that is unfavorable. Which circuit case has more authoritative weight? 1. 6th Circuit 2. 5th Circuit 3. 9th Circuit 4. 11th Circuit