Concept explainers
Income Tax The U.S. federal income tax owed by a married couple filing jointly can be found from the following table.
Filing Status: Married Filing Jointly
If Taxable Income Is between | Tax Due Is | of the Amount over |
$0–$16,750 | 10% | $0 |
$16,750–868,000 | $1675 + 15% | $16,750 |
$68,000–$137,300 | $9362.50 + 25% | $68,000 |
$137,300–$209,250 | $26,687.50 + 28% | $137,300 |
$209,250–$373,650 | $46,833.50 + 33% | $209,250 |
$373,650–up | $101,085.50 + 35% | $373,650 |
(Source: Internal Revenue Service. Form 1040 Instructions)
a. Write the piecewise-defined function T with input x that models the federal tax dollars owed as a function of x, the taxable income dollars earned, with 0 < x < 137,300.
b. Use the function to find T(42,000).
c. Find the tax owed on a taxable income of $65,000.
d. A friend tells Jack Waddell not to earn anything over $68,000 because it would raise his tax rate to 25% on all of his taxable income. Test this statement by finding the tax on $68,000 and $68,000 + $1. What do you conclude?
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