In this assignment we will be looking at personal income taxes. In 2017 it was normal to be able to have deductions and a personal exemption deducted from ones total income before determining their taxable income. For the purposes of this activity, we will consider only a single filing status. In 2017, the standard deduction was $6,350 and the personal exemption was $4,050. So an individual who brought in a total income of $30,000 would have to pay taxes on $19,600 ($30,000-$6,350-$4050). The $19,600 represents their taxable income.

Part 3: house Tax Plan for 2018

For 2017 the actual tax brackets for a single tax filer were:

Here are the actual tax brackets for the 2017 tax year for a single tax filer:

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:

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.

Answer the following questions:

1. Create a table showing the amount of money that can be taxed in each bracket and the maximum tax that can be charged in that bracket.

2. Write a function to model the total tax paid, T(x), with a total income of x dollars.

3. What is the slope of the line when an individuals total income is $210,000? What does this value represent?