Chapter 14, End of Chapter, Research Problems, Exercise 4
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Use internet tax resources to address the following questions. Look for reliable websites and blogs of the IRS and other government agencies, media outlets, businesses, tax professionals, academics, think tanks, and political outlets.

 

How do U.S. individuals generate their income? Does it vary by size of income (AGI)? Go to the IRS tax statistics website (irs.gov/statistics), and download a recent tax year's information on "sources of income." Compare the following types of income by size of AGI: (1) wages, (2) capital gain distributions, (3) sales of capital assets, and (4) sales of property other than capital assets. Cluster the data into no more than six AGI categories. Present your findings in a visual (e.g., bar chart), and summarize your findings in a one-page memo to your instructor.

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