NEW RULES PASSED (TRUMP PRESIDENCY) (2018-2022) Standard Deduction $12,000 Higher and simplified deductions Personal Exemption $0 Lower cut-offs and lower rates Tax rate Full-bracket tax (short-cut approach) 10% 12% TGI range $0-$9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 $500,000+ 22% 24% 32% 35% 37% Taxable gross income = Annual gross income-Stardard deduction Effective tax rate = Income tax payable / Annual gross income 1. Julie, a junior financial advisor, is a single tax filer with no additional deductions. For an AGI of $65,000 in 2018, how much in federal income taxes does she have to pay? 2. Josh, her supervisor, a senior financial advisor, is also a single tax filer with no additional deductions. How much in federal income taxes does he have to pay for 2018 if his AGI was $110.000? 3. Explain why this taxation scheme is "progressive"? (Tips: calculating the two effective tax rates and compare them)