An examination of the tax rate schedules for single taxpayers for 2020 indicates that the tax is a given dollar amount plus a percentage of taxable income exceeding a particular level.

a) Explain how the "given dollar amounts" are determined.

b) Assuming the taxpayer has a taxable income of $50,000 and is single, what is the tax liability for 2020?

c)What is the taxpayers marginal tax rate?

d) What is the taxpayers average rate?

e) Assuming the taxpayer has tax-exempt interest income from multipal bonds of $30,000, what is the taxpayers effective tax rate?