Average corporate tax rates Using the corporate tax rate schedule given here LOADING... , perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,900; $78,900; $303,000; $499,000; $1.3 million; $9.6 million; and $20.4 million. b. Plot the average tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship between these variables?

Corporate Tax Rate Schedule
		Tax calculation
Range of taxable income		Base tax	plus+	(Marginal ratetimes amount over base bracket)
$0 to	$50,000	$0	plus+	(15%	times	amount over	$0)
50,000 to	75,000	7,500	plus+	(25%	times	amount over	50,000)
75,000 to	100,000	13,750	plus+	(34%	times	amount over	75,000)
100,000	335,000	22,250	plus+	(39%	times	amount over	100,000)
335,000 to	10,000,000	113,900	plus+	(34%	times	amount over	335,000)
10,000,000 to	15,000,000	3,400,000	plus+	(35%	times	amount over	10,000,000)
15,000,000 to	18,333,333	5,150,000	plus+	(38%	times	amount over	15,000,000)
Over 18,333,333		6,416,667	plus+	(35%	times	amount over	18,333,333)