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The table below shows Independences personal income tax schedule. Taxable income Marginal tax rate (%) $0-$5,000 5 $5,001-$15,000 7 $15,001-$30,000 9 $30,001-$50,000 11 $50,001-$75,000 13

The table below shows Independences personal income tax schedule.

Taxable income Marginal tax rate (%)

$0-$5,000

5
$5,001-$15,000 7
$15,001-$30,000 9
$30,001-$50,000 11
$50,001-$75,000 13
$75,001-$100,000 15
$100,001-$130,000 20
$130,0010-$175,000 21
$175,001 + 22

In answering the following questions, you may assume the following. (1) All income other than capital gains falls under the personal income tax. (2) Deductible expenses are subtracted from income before income tax is calculated. (3) Charitable donations and money paid in payroll taxes are tax-deductible. (4) Payroll tax is 5 percent of earned income up to $50,000. (5) Capital gains tax is 3 percent on capital gains over $10,000. (6) Sales tax is 6 percent.

Evangeline is a citizen of Independence, whose income and expenditures are shown in the table below.

Category Amount ($)
income earned in wage 94,000
income from capital gains 24,000
spending of consumer goods subject to sale tax 16,000
spending on charitable donations 2,000

Instructions: Round your answers to the nearest whole number.

a. Evangeline pays $2,500 in payroll taxes. b. Evangeline pays $ ______ in capital gains taxes. c. Evangelines adjusted income subject to the personal income tax is $89,500

Evangeline pays $_________ in personal income tax.

d. Evangeline pays $960 in sales taxes. e. Evangeline pays $________ in taxes, in total. Instructions: Round your answer to one decimal place. Evangeline pays ______% of her overall income in total taxes.

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