In 2016,Venkat,who Is Single and Age 37,received $60,000 of Gross

question 55

Multiple Choice

In 2016,Venkat,who is single and age 37,received $60,000 of gross income and had $6,800 of itemized deductions.Venkat's taxable income is

• A)$49,150.
• B)$53,200.
• C)$55,950.
• D)$49,650.

---

Definitions:

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.

Net Worth

The total value of all assets owned by an individual or organization minus any liabilities or debts.