Effective Income Tax Rate

Background

Taxes can be$...$complicated. We are taxed on our income, our businesses, the property we own, etc., to fund the creation and maintenance of public services and

infrastructure, like Social Security and road maintenance. Determining an individual's total taxes is usually nontrivial, but we can estimate someone's effective

income tax rate relatively simply. Knowing how to make this calculation is helpful for estimating your yearly "take home" pay.

Federal and state $($Arizona$)$ income tax rates are different. The federal income tax rates for wages earned in $2023($not self$-$employed$)$ vary with one's income

bracket and can be found on the IRS website $($link$).$ The state of Arizona has a flat income tax rate of $2\mathrm{.}50\%$ for wages earned in $2023.$

Function Requirements

Write a MATLAB function called TaxRate that takes an individual's income $($in USD$)$ as input and computes their estimated income tax $($first output$)$ and their

effective income tax rate $($second output$),$ calculated as $\frac{\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{t}\text{a}\text{x}\text{p}\text{a}\text{i}\text{d}}{\text{w}\text{a}\text{g}\text{e}\text{s}\text{e}\text{a}\text{r}\text{n}\text{e}\text{d}}$ and reported as a percent. Consider this individual to be a filing as single person and do not

consider the standard deduction when writing your code. For example, consider an individual who earned $$20,000$ in wages in Arizona in $2023.$ Based on Arizona's

flat tax and the federal government's bracketed tax structure, your function's first output should be $2680$ and its second output should be $13\mathrm{.}4.$