Question: Dick De Wolf and his wife have a total taxable income of $60,000 this year and file a joint federal income tax return. If inflation

Dick De Wolf and his wife have a total taxable income of $60,000 this year and file a joint federal income tax return. If inflation continues for the next 20 years at a 7% rate, compounded annually, Dick wonders what their taxable income must be in the future to provide them the same purchasing power, after taxes, as their present taxable income. Assuming the federal income tax rate table is unchanged, what must their taxable income be 20 years from now?

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