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: Please answer a and b using schedule below

Tax Rate - Single Taxpayers -2018
		Tax calculation
Range of taxable income		Base tax	+	(Marginal rateamount 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	+	(32%		amount over	157,500)
200,000 to	500,000	45,690	+	(35%		amount over	200,000)
Over 500,000		150,690	+	(37%		amount over	500,000)

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

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.