Description
Assignment 6
SHOW CALCULATIONS AT ALL TIMES: Answer the following questions in detailed and clear terms:
- Consider the table below. We can use these data to find out what percentage of federal taxes is paid from the “top down” by the top 40%, top 60%, or top 80% of income earners. Likewise, we can count from the “bottom up” by the bottom 40%, 60%, or 80% of income earners. Fill in the table and show workings for full credit (12 points)
Share of Total Federal Tax Revenue | Share of Total Federal Tax Revenue | ||
Everyone | 100% | Everyone | 100% |
Bottom 20% | 0.89% | Top 80% | |
Bottom 40% | 7.9% | Top 60% | |
Bottom 60% | Top 40% | 88.6% | |
Bottom 80% | Top 20% | 69.7% |
- Given these data, which of the following are true or false? EXPLAIN (14points)
- The bottom 60% of taxpayers pay less than 25% of federal taxes.
- The top 80% of taxpayers pay over 98% of federal taxes.
- The top 40% of taxpayers pay less than 60% of federal taxes.
- In 2013, corporate income taxes were about 9.9% of total federal revenue. Use the graph below to help estimate what fraction of GDP represents corporate income taxes. (14points)
4. There are a lot of ways to slice up the U.S. budget. Answer the following questions/statements, based on the illustration below (Show calculations and explain your answers): (10pts per question)
- Most of the federal budget is spent on welfare and foreign aid.
- The budget for the next year increased by 20%, what would be the allocation for Medicaid if the increase of 20 percent was applied uniformly and equally among all the sections stated.
- About half of the federal budget goes toward Medicare, Medicaid, and Social Security combined.
- More than half of the federal budget goes toward Medicare, Medicaid, Social Security, and interest on the debt combined.
- The federal government spends about $1,830 on the military per person in the United States.
- If 35% of unemployment insurance and welfare was spent on Welfare alone. What percentage of the US budget was spent on Welfare?
NOTE:
US Population: 327.2 million
US GDP : $20,581 billion (2018)
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Attached.
Assignment 6
SHOW CALCULATIONS AT ALL TIMES: Answer the following questions in detailed and
clear terms:
1. Consider the table below. We can use these data to find out what percentage of federal
taxes is paid from the “top down” by the top 40%, top 60%, or top 80% of income
earners. Likewise, we can count from the “bottom up” by the bottom 40%, 60%, or 80%
of income earners. Fill in the table and show workings for full credit (12 points)
Share of Total Federal Tax Revenue
Everyone
100%
Bottom 20%
0.89%
Bottom 40%
7.9%
Bottom 60%
Bottom 80%
Share of Total Federal Tax Revenue
Everyone
100%
Top 80%
Top 60%
Top 40%...