Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In 2020, the Canadian government established the following federal tax rates: 15% on the first $48,535 of taxable income, + 20.5% on the next

image text in transcribed

1. In 2020, the Canadian government established the following federal tax rates: 15% on the first $48,535 of taxable income, + 20.5% on the next $18,535 of taxable income (on the portion of taxable income over $48,535 up to $97,069), + 26% on the next $53,404 of taxable income (on the portion of taxable income over $97,069 up to $150, 473), + 29% on the next $63,895 of taxable income (on the portion of taxable income over $150,473 up to $214.368), + 33% of taxable income over $214.368. (a) Sketch a graph representing the tax rate R(x) as a function of taxable income a. (b) Determine lim R(x) and describe what it means in context. (C) Is R() continuous everywhere? Explain. (a) Sketch a graph representing the amount of tax owed (r) as a function of taxable income. Clearly state the domain and range of this function. (e) Give the formula for the piecewise function representing the amount of tax owed (1) as a function of taxable income. (f) Is T() continuous everywhere? Explain. (g) Some people wonder if it is worth taking a raise if it bumps them into a higher tax bracket as they worry they will pay more tax than the raise is worth. Using the graph above, explain why their fears are unjustified. (h) Canada's income tax rates are called progressive because the rate increases as income increases. Suppose the government decided to apply a flat tax rate of 25% to everyone. For which income(s) would this flat rate of 25% be the same as the current progressive tax? Use a graph to explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Nonso E Okpala

1st Edition

1634873904, 9781634873901

More Books

Students also viewed these Finance questions

Question

How appropriate would it be to conduct additional research?

Answered: 1 week ago

Question

Who are credible sources and opinion leaders for this public?

Answered: 1 week ago

Question

How does or how might your organization affect this public?

Answered: 1 week ago