econ 230 week 6 assignment show clear and detailed calculations and workings for full credit
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)