Question

# Question # 5 - Exhibit 2.1 USE THE TAX TABLE PROVIDED BELOW FOR THE FOLLOWING PROBLEM(S)...

Question # 5 - Exhibit 2.1

USE THE TAX TABLE PROVIDED BELOW FOR THE FOLLOWING PROBLEM(S)

 If Taxable Income Then The Tax is Is Over But Not Over This Amount Plus This % Of The Excess Over Single \$0 \$7,150 0 10% 0 \$7,150 \$29,050 715 15% \$7,150 \$29,050 \$70,350 \$4,000 25% \$29,050 \$70,350 \$146,750 \$14,325 28% \$70,350 \$146,750 \$319,100 \$35,717 33% \$146,750 \$319,100 - \$92,592.50 35% \$319,100 Married \$0 \$14,300 0 10% 0 Filing \$14,300 \$58,100 1430 15% \$14,300 Jointly \$58,100 \$117,250 \$8,000 25% \$58,100 \$117,250 \$178,650 \$22,787.50 28% \$117,250 \$178,650 \$319,100 \$39,979.50 33% \$178,650 \$319,100 - \$86,328 35% \$319,100
1. Refer to Exhibit 2.1. What is the marginal tax rate for a single individual with taxable income of \$85,000?
2. Refer to Exhibit 2.1. What is the tax liability for a single individual with taxable income of \$85,000?

Refer to Exhibit 2.1. What is the marginal tax rate for a single individual with taxable income of \$85,000?

Marginal tax rate = 28%

Marginal Tax Rate means Tax rate on increased income. it menas due to fact the fact that Tax system is progressive which means marginal tax rate increases when income increases (\$85000 comes under (\$70350 - 146750))

Refer to Exhibit 2.1. What is the tax liability for a single individual with taxable income of \$85,000?

Tax Liability = \$14325 + (85000-70350) * 28%

Tax Liability = \$18427

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