"Taxable income TI is the amount of income upon which taxes are based" (Blank, 460). Any individual who earns wages, including consenting tips, is required to pay taxes on that income. Taxable income TI and tax rate have a linear relationship, higher taxable income earned leads to a higher tax rate. Corporations can deduct depreciation, amortization, and depletion among other deductibles however, individuals cannot deduct living and working expenses as those are the same as operating expenses in a corporation. In the United States, tax rates for individuals and corporations are graduated by the level of Taxable income which can be found on the IRS website at www.irs.gov c References: Blank, L. T., & Tarquin, A. J. (2018). Engineering economy (8th ed., p. 319)