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You will prepare and submit a term paper on Personal Income. Your paper should be a minimum of 250 words in length.
You will prepare and submit a term paper on Personal Income. Your paper should be a minimum of 250 words in length. Computation of ratio of taxes to personal income using OMB data and once the BEA data Personal income tax liabilities andcorresponding prepayments mainly forecast on a common rate and underlying base. Nevertheless, tax liabilities in regard to collections basis are mainly approximated subsequent to effect of tax programs.
FAR was worse at the extreme top, with the corresponding top at 20% possessing 1.33 ratio of taxes paid to personal income earned. Conversely, the prevailing 1% possessed a staggering 1.62.Moreover, every quintile was below one. 1.62 was top with 1%.1.33 for the fifth quintile, 0.84 in the fourth quintile, 0.64 in the third quintile, 0.39 in the second quintile and 0.02 within the first quintile. The underlying ratio of percentage of taxes paid to the corresponding percentage of the income earned for the underlying 20% is 1.33. Moreover, this ratio 1.33 is approximately the same to 1.35 that on the top 10% based on the income tax alone
. Calculation of Average Propensity to Consume (APC)
Average Propensity to Consume (APC) = Consumption/ Disposable Income
= $30,000/$40,000
=0.75
.
Work Cited
Schiff, Peter D. The Real Crash: Americas Coming Bankruptcy-How to Save Yourself and Your Country. New York: St. Martins Press, 2012. Print.
