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4. Dakota can work up to 4000 hours in a year at a wage rate of $10/hr. In 2021, Dakota worked 2000 hours a year.
4. Dakota can work up to 4000 hours in a year at a wage rate of $10/hr. In 2021, Dakota worked 2000 hours a year. Use the tax brackets for 2021 to answer the following questions.2021 Tax Brackets Individual Taxpayers If Taxable Income Is Between: The Tax Due Is: 0 - $9,950 10% of taxable income $9,951- $40,525 $995 + 12% of the amount over $9,950 $40,526 - $86,375 $4,664 + 22% of the amount over $40,525 $86,376 - $164,925 $14,751 + 24% of the amount over $86,375 $164,926 - $209,425 $33,603 + 32% of the amount over $164,925 $209,426 - $523,600 $47,843 + 35% of the amount over $209,425 $523,601 $157,804.25 + 37% of the amount over $523,600 Married Individuals Filing Joint Returns and Surviving Spouses If Taxable Income Is Between: The Tax Due Is: 0 - $19,900 10% of taxable income $19,901 - $81,050 $1,990 + 12% of the amount over $19,900 $81,051 - $172,750 $9,328 + 22% of the amount over $81,050 $172,751 - $329,850 $29,502 + 24% of the amount over $172,750 $329,851 - $418,850 $67,206 + 32% of the amount over $329,850 $418,851 - $628,300 $95,686 + 35% of the amount over $418,850 $628,301 $168,993.50 + 37% of the amount over $628,300d. Draw Dakota's budget constraint with nonmarket time on the horizontal axis and consumption of market goods on the vertical axis. Show Dakota's optimal choice of TH and TM (this is how much Dakota actually chooses to work) on your graph.e. If Dakota marries their partner Dallas, who made $100,000 is 2021, draw Dakota's new budget constraint on your graph above (ignore Dallas's income except in determining Dakota's tax bracket)
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