Question
Consider a country that taxes its citizens individually according to the following rate schedule: Taxable Income Marginal Tax Rate First $25,000 10% Over $25,000 up
Consider a country that taxes its citizens individually according to the following rate schedule:
Taxable Income | Marginal Tax Rate |
First $25,000 | 10% |
Over $25,000 up to $50,000 | 20% |
Over $50,000 | 30% |
Suppose that the steps to compute tax liability are the same in this tax system as they are in Canada. Compute the tax liability for a taxpayer with $85,000 in total income, of which $14,000 qualifies for a deduction and $5,000 qualifies for a credit.
[NOTE: Fill in the blank below with your numeric answer. If necessary, please round to the nearest whole number. Do not include the dollar sign or comma.]
This taxpayer's total tax liability will be $ .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started