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

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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

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%
  1. Given these data, which of the following are true or false? EXPLAIN (14points)
    1. The bottom 60% of taxpayers pay less than 25% of federal taxes.
    2. The top 80% of taxpayers pay over 98% of federal taxes.
    3. 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)