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 i perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $12,000; $81,400; $295,000; $500,000; $1.2 million; $1.6 million; and $1.9 million. 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? Tax Rates-Single Taxpayers-2018 Range of taxable income Tax calculation Base tax + (Marginal rate x amount over base bracket) $0 to $9,525 $0 + (10% amount over $0) 9,525 to 38,700 953 + (12% amount over 9,525) 38,700 to 82,500 4,454 + (22% amount over 38,700) 82,500 to 157,500 14,090 + (24% amount over 82,500) 157,500 to 200,000 32,090 200,000 to 500,000 45,690 Over 500,000 150,690 + + + (32% amount over 157,500) (35% amount over 200,000) (37% amount over 500,000)