a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,800; $59,500; $89,600; $151,000; $245,000; $451,200; $1,000,000 b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,800; $59,500; $89,600; $151,000; $245,000; $451,200; $1,000,000 b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 26P
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Question
Marginal tax rates Using the tax rate schedule attached
Perform the following:a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes:
$16,800;
$59,500;
$89,600;
$151,000;
$245,000;
$451,200;
$1,000,000
b. Plot the marginal tax rates (measured on the
y-axis)
against the pretax income levels (measured on the
x-axis).
Transcribed Image Text:Tax Rates Schedule
Range of taxable income
$0 to
9,876 to
40,126 to
85,526 to
163,301 to
207,351 to
518,401 to
$9,875
40,125
85,525
163,300
207,350
518,400
Unlimited
Base tax
+
$0 + (10%
988 + (12%
4,618 + (22%
14,606 + (24%
33,272 +
(32%
47,368 +
(35%
156,235 +
(37%
(Marginal rate x amo
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
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