Robbins Corporation is a retail dealer for electronic equipment. The taxable income is

$601,500. Calculate the tax liability.

The corporate tax rates are as follows :

Income from 0 to $50,000 =15%

$50,000 to $75,000 =25%

$75,000 to $1,000,000 =33%

Over $1,000,000 =40%

Additional Surcharge :

5% on income between $100,000 to $350,000

2% on income over $350,000

Explain the importance of Taxation in an economy and how it contributes to the overall

well being of the society at large.