U.S.lt Your fatin co 3. Joe Smith and Suzie Jones are two Hope College graduates. Joe expects to have $20,000 in taxable income and Suzie expects to have $85,000 in taxable income during the year. Joe and Suzie are engaged, but not yet married. Using the tax tables for (attached at the end of this question): ome Tax a. What is the tax to be paid to the federal government by Joe? b. What is the tax to be paid to the federal government by Suzie? C. What is the total tax to be paid by both Joe and Suzie? Assume now that Joe and Suzie are married (everything else is the same): d. What is the tax to be paid by the married couple Joe and Suzie? e. When you compare answers (c) and (d), what do you learn? What do you think? f. What is the marginal tax rate for Joe and Suzie (married)? g. What is the average tax rate for Joe and Suzie (married)? The average tax rate is computed by dividing total taxes owed by taxable income. h. If Joe and Suzie made $1 additional income, how much would they keep and how much would they pay to the federal government? i. Joe is offered a new job with a salary $3,000 greater than his current salary. However, he will have additional personal costs of $2,300. Is it financially advantageous for Joe to accept the new position? Individual Taxpayers If Taxable income Is Between: The Tax Due is: 0 - $9,325 10% of taxable income $9,326- $37,950 $932.50 + 15% of the amount over $9,325 $37,951 - $91,900 $5,226.25 + 25% of the amount over $37,950 $91,901 - $191,650 $18,713.75 +28% of the amount over $91,900 $191,651 - $416,700 $46,643.75 + 33% of the amount over $191,650 $416,701 - $418,400 $120,910.25 + 35% of the amount over $416,700 $418,401 + $121,505.25 + 39.6% of the amount over $418,400 Married Individuals Filing Joint Returns and Surviving Spouses If Taxable Income Is Between: The Tax Due Is: 0 - $18,650 10% of taxable income $18,651 - $75,900 $1,865 + 15% of the amount over $18,650 $75,901 - $153,100 $10,452.50 + 25% of the amount over $75,900 $153,101 - $233,350 $29,752.50 + 28% of the amount over $153,100 $233,351 - $416,700 $52,222.50 + 33% of the amount over $233,350 $416,701 - $470,700 $112,728 + 35% of the amount over $416,700 $470,701 + $131,628 + 39.6% of the amount over $470,700