Question
Proposed New Tax Plan: For taxable income from $0 to $45,000, you pay 12% of it in taxes, plus For taxable income from $45,001 to
Proposed New Tax Plan:
For taxable income from $0 to $45,000, you pay 12% of it in taxes, plus For taxable income from $45,001 to $200,000, you pay 25% of it in taxes, plus For taxable income from $200,001 to $500,000, you pay 35% of it in taxes, plus For taxable income of $500,001 or more, you pay 39.6%.
Where the standard deduction was raised to $12,200 and the personal exemption was eliminated. For the remaining exercises, we will only consider this proposed tax plan.
- Complete both of the tables below:
Taxable Income | ||||
Lower Bound | Upper Bound | Rate | Maximum Money in Bracket | Maximum Tax in Bracket |
$0 | $45,000 | 12% | $5,400 | |
$45,000 | $155,000 | |||
$200,000 | $105,000 | |||
No Limit | No Limit | No Limit | ||
Total Income | ||||
Lower Bound | Upper Bound | Rate | Maximum Money in Bracket | Maximum Tax in Bracket |
$0 | $12,200 | 0% | $12,200 | $0 |
$57,200 | $45,000 | |||
$38,750 | ||||
$512,200 | No Limit | No Limit | No Limit |
- How many slopes would be on this graph?
- Write a function to model the total tax paid, T(x), with a total income of x dollars.
- How much does a person pay in taxes if their total income is $210,000?
- What is the slope of the line when an individual's total income is $210,000?
NOTE: For a Total Income of $85,000, an individual would pay $12,350 in taxes.
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