MrOhno Owns and Operates a Part-Time Service Business That Generates

question 58

Essay

Mr.Ohno owns and operates a part-time service business that generates $80,000 annual taxable income.Assume that his federal tax rate on this income is 17%.Because of recent legislation,this rate will increase to 25% next year.
A.Based on a static forecast,how much additional revenue will the federal government collect from Mr.Ohno next year?
B.How much additional revenue will the federal government collect if Mr.Ohno decides to work fewer hours and consequently earns only $50,000 next year?

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Respiratory Therapist

A healthcare professional specializing in evaluating, treating, and caring for patients with breathing or other cardiopulmonary disorders.

Breathing Treatments

Therapeutic procedures, often involving inhalation of medication in a mist form, that are used to treat respiratory conditions.

Primary Care Provider

A healthcare professional who offers general medical assistance and is often the first point of contact for patients.