Question
For 2017 the actual tax brackets for a single tax filer were: For taxable income from $0 to $9,325, you pay 10% of it in
For 2017 the actual tax brackets for a single tax filer were:
For taxable income from $0 to $9,325, you pay 10% of it in taxes, plus For taxable income from $9,326 to $37,950, you pay 15% of it in taxes, plus For taxable income from $37,951 to $91,900, you pay 25% of it in taxes, plus For taxable income from $91,901 to $191,650, you pay 28% of it in taxes, plus For taxable income from $191,651 to $416,700, you pay 33% of it in taxes, plus For taxable income from $416,701 to $418,400, you pay 35% of it in taxes, plus For taxable income at or above $418,401, you pay 39.6%.
At the end of 2017, the House proposed a new tax plan:
Proposed New Tax Plan:
For taxable income from $0 to $45,000, you pay 12% of it in taxes, plus For taxable income from $45,001 to $200,000, you pay 25% of it in taxes, plus For taxable income from $200,001 to $500,000, you pay 35% of it in taxes, plus For taxable income of $500,001 or more, you pay 39.6%.
Where the standard deduction was raised to $12,200 and the personal exemption was eliminated. For the remaining exercises, we will only consider this proposed tax plan.
- Complete both of the tables below:
- How many slopes would be on this graph?
- Write a function to model the total tax paid, T(x), with a total income of x dollars.
- How much does a person pay in taxes if their total income is $210,000?
- What is the slope of the line when an individual's total income is $210,000
-
Lower Bount Upper Bound
Rate
Maximum Money in Bracket
Maximum Tax in Bracket
$0
$45,000
12%
$5,400
$45,000
$155,000
$200,000
$105,000
No Limit
No Limit
No Limit
Total Income
Lower Bound
Upper Bound
Rate
Maximum Money in Bracket
Maximum Tax in Bracket
$0
$12,200
0%
$12,200
$0
$57,200
$45,000
$38,750
$512,200
No Limit
No Limit
No Limit
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