TABLE $3\mathrm{.}6$ Personal tax rates, $2022.$

Taxable Income $($$$)$

Single Taxpayers Married Taxpayers Filing Joint Returns Tax Rate $(\%)$

$09,950019,90010\%$

$9,95040,52519,90081,05012\%$

$40,52586,37581,050172,75022\%$

$86,375164,925172,750329,85024\%$

$164,925209,425329,850418,85032\%$

$209,425523,600418,850628,30035\%$

$523,600$ and above $628,300$ and above $37\%\backslash \backslash \backslash$

You have set up your tax preparation firm as an incorporated business. You took $$80,000$ from the firm as your salary. The firm's taxable income for the year $($net of your salary$)$ was $$30,000.$ Assume you pay personal taxes as an unmarried taxpayer. Use the tax rates presented in Table $3\mathrm{.}6.$

How much tax must be paid to the federal government, including both your personal taxes and the firm$$s taxes?

By how much will you reduce the total tax bill if you cut your salary to $$50,000,$ thereby leaving the firm with taxable income of $$60,000?$

What allocation will minimize the total tax bill? Hint: Think about marginal tax rates and the ability to shift income from a higher marginal bracket to a lower one.

Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar amounts.