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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 income

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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 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 perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership camnings before taxes: $12,900; $81,000; $297,000, $500,000: $1.2 million $1.5 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? a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $12,900 $81,000; 5297,000; $500,000 $1,200,000, 51.5 million, and $1.9 million The tax liability for earnings before taxes of $12,900 is $. (Round to the nearest dollar.) d average tax rates Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through in at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduc ring to calculate her taxes owed for the year. Using the tax rate schedule given here perform the following: the tax liability, after-tax earnings, and average tax rates for the following levels of par More Info nings before taxes: $12,900; $81,0 600,000; $1.2 million; $1.5 million; and $1.9 million. verage tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be ma he relationship between these variables? More Info Tax Rates-Single Taxpayers-2018 0 + + Range of taxable income $0 to $9,525 9,525 to 38,700 38,700 to 82,500 82,500 to 157,500 157,500 to 200,000 200,000 to 500,000 Over 500,000 Base tax $0 953 4,454 14,090 32,090 45,690 150,690 Tax calculation (Marginal rate x amount over base bracket) (10% X amount over $0) + (12% x amount over 9,525) + (22% X amount over 38,700) + (24% x amount over 82,500) + (32% x amount over 157.500) + (35% x amount over 200,000) + (37%

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