Range of responses	Most common responses
What do you think is the highest Federal income tax rate in effect for individuals?	15-55%	30-34% or 40-44%
What do you think should be the highest Federal income tax rate for individuals?	5-45%	11-30%
What do you think is the highest Federal income tax rate in effect for corporations?	18-50%	40-44%
What do you think should be the highest Federal income tax rate for corporations?	10-50%	30-34%
Corporation X has the following results for the current year. Calculate what you think its federal income tax base should be.
Sales less cost of goods sold		$780,000
Total salaries paid to its 12 salesmen		360,000
Salary paid to its president, the sole stockholder		380,000
Cost of new machinery purchased		75,000
Dividends paid to stockholder		2,000
Dividends received from stock in a public company		1,500
Appreciation between January 1 and December 31 of the stock in the public company		19,000
Note: In discussing this question, I point out that later we will address such issues as reasonable compensation, capitalization of costs, tax treatments of dividends received and paid and tax recognition of gains.