Marginal and average tax rates Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here LOADING... , perform the following:

a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $ 10 comma 000$10,000; $ 80 comma 000$80,000; $ 300 comma 000$300,000; $ 500 comma 000$500,000; $ 1.0$1.0 million; $ 1.5$1.5 million; and $ 2.0$2.0 million. Tax rate schedule as follows:

Tax Rates-Single Taxpayers-2018

Tax calculation

Range of taxable income

Base tax

plus+

(Marginal

ratetimes amount

over base bracket)

$ 0$0 to

$ 9 comma 525$9,525

$ 0$0

plus+

(1010%

times

amount over

$ 0$0)

9 comma 5259,525 to

38 comma 70038,700

953953

plus+

(1212%

times

amount over

9 comma 5259,525)

38 comma 70038,700 to

82 comma 50082,500

4 comma 4544,454

plus+

(2222%

times

amount over

38 comma 70038,700)

82 comma 50082,500 to

157 comma 500157,500

14 comma 09014,090

plus+

(2424%

times

amount over

82 comma 50082,500)

157 comma 500157,500 to

200 comma 000200,000

32 comma 09032,090

plus+

(3232%

times

amount over

157 comma 500157,500)

200 comma 000200,000 to

500 comma 000500,000

45 comma 69045,690

plus+

(3535%

times

amount over

200 comma 000200,000)

Over

500 comma 000500,000

150 comma 690150,690

plus+

(3737%

times

amount over

500 comma 000500,000)

b. 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?