Marginal 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. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes:

$13,700

$60,100

$90,800

$149,000

$249,000

$445,000

$1.3 million.

b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). Explain the relationship between these variables