Table 12-4
United States Income Tax Rates for a Single Individual, 2017 and 2018.

-Refer to Table 12-4. Bill is a single person whose taxable income is $35,000 a year. What happened to his average tax rate between 2017 and 2018?

Question

Table 12-4
United States Income Tax Rates for a Single Individual, 2017 and 2018.
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-Refer to Table 12-4. Bill is a single person whose taxable income is $35,000 a year. What happened to his average tax rate between 2017 and 2018?

Quizplus · Accepted Answer

The Tax Cuts and Jobs Act of 2017 lowered tax rates for many taxpayers beginning in 2018. Therefore, if Bill's taxable income remained the same ($35,000), his average tax rate likely decreased due to the reduced tax rates.

Table 12-4 United States Income Tax Rates for a Single Individual, 2017