Here is a hypothetical income tax schedule, expressed in nominal terms, for the year 2010:

The legislature wants to ensure that families with a given real income are not pushed up into higher tax brackets by inflation. The CPI (times 100) is 175 in 2010 and 185 in 2012. How should the income tax schedule above be adjusted for the year 2012 to meet the legislature’s goal? (LO2)

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Family income $80,000 Taxes due (percent of income) 10 12 15 20 25