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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
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 at 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 perform the following a. Calculate the tax lability after-bex eamings, and average tax rates for the following levels of partnership samings before taxes: $11,200 $82.200 $302,000; $491,000, $12 million $1.6 mition; and $1.9 milion 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? a. Calculate the tax lebih after-tax eamings, and average tax rates for the following levels of partnership samings before taxes: $11.200, $82.200, $302,000, $491,000 $1,200,000 $1,6 milion and $1.9 millon The tax liability for eamings bere taxes of $11,200 is (Round to the nearest doda
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