Mr Ohno Owns and Operates a Part-Time Service Business That

question 63

Essay

Mr. Ohno owns and operates a part-time service business that generates $80,000 annual taxable income. 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?
A. The federal government will collect $6,400 additional revenue ($80,000 * 8% rate increase).
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?
B. The federal government will collect $1,100 less revenue ([$50,000 * 25%] - [$80,000 * 17%]).

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Definitions:

Thanatos

According to the Freudian view, the basic death instinct that functions in opposition to the life instinct.

Psychodynamic

An approach in psychology which emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Sociocultural

Relating to the combined influence of social and cultural factors on an individual's behavior and development.

Freudian View

is a perspective based on the theories of Sigmund Freud, which emphasizes the role of unconscious processes in shaping behavior, thoughts, and emotions.