Corporate Tax Rate Schedule Taxable income brackets Tax calculation Base tax + (Marginal rate amount over bracket lower limit) $ 0 to $ 9,525 $ 0 + (10% amount over $ 0) 9,525 to 38,700 $ 953 + (12% amount over $ 9,525) 38,700 to 82,500 $ 4,454 + (22% amount over $ 38,700) 82,500 to 157,500 $ 14,090 + (24% amount over $ 82,500) 157,500 to 200,000 $ 32,090 + (32% amount over $157,500) 200,000 to 500,000 $ 45,690 + (35% amount over $200,000) Over 500,000 $150,690 + (37% amount over $500,000)

Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10,000; $80,000; $300,000; $500,000; $1 million; $1.5 million; and $2 million.

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?