Federal 2021 Tax Rates: Due in April of 2022. 2021 Taxable Income TAX RATE $0 to $49,020 15.0% $49,020 to $98,040 20.5% $98,040 to $151,978 26.0% $151,978 to $216,511 29.0% $216,511 to Infinity 33.0% Ontario (2021) Basic Tax Rates T.I. FROM TO TAX RATE Bracket #1 $0 $45,142 5.05% Bracket #2 2 $45,142 $90,287 9.15% Bracket #3 $90,287 $150,000 11.16% Bracket #4 $150,000 $220,000 12.16% Bracket #5 $220,000 Infinity 13.16% Ontario Basic tax greater than Additional Surtax Rate $4,874 20% $6,237 36% Assume that Jack and Jill are married, or cohabitating or living common law in Ontario, and that Jack earns $25,000 per year, and that Jill earns $175,000 per year for a total family income of $200,000. Assume that Jack & Jill are each subject to the 2021 marginal tax rate schedule presented and discussed in class, but they are entitled to a basic personal tax credit of (only) $2,000 per person on both their Federal and Provincial tax returns. To be very clear, they are entitled to absolutely no other tax credit and no deductions. Nada. + A. What is the amount of tax (Federal + Provincial + Surtax) that Jack owes? And what is his after-tax income? B. How much would Jack have to earn pre-tax, to retain $25,000 after tax? Please show your (math, algebra) work very carefully. C. What is the amount of tax (Federal + Provincial + Surtax) that Jill owes? And, what is her after-tax income? D. How much would Jill have to earn pre-tax, to retain $175,000 after tax? Please show your (math, algebra) work very carefully. E. How much would they (as a household unit) gain if they were able to (legally) split their income, with Jill transferring $75,000 to Jack so they both "earn" $100,000 in taxable income. Note that this would not affect their tax credits