For the purposes of this activity, we will consider only a “single” filing status. In 2017, the standard deduction was $6,350 and the personal exemption was $4,050. So, an individual who brought in a total income of $30,000 would have to pay taxes on $19,600 ($30,000-$6,350-$4050). The $19,600 represents their taxable income.

Part 3: House Tax Plan for 2018

For 2017 the actual tax brackets for a single tax filer were:

• For taxable income from $0 to $9,325, you pay 10% of it in taxes, plus

• For taxable income from $9,326 to $37,950, you pay 15% of it in taxes, plus

• For taxable income from $37,951 to $91,900, you pay 25% of it in taxes, plus

• For taxable income from $91,901 to $191,650, you pay 28% of it in taxes, plus

• For taxable income from $191,651 to $416,700, you pay 33% of it in taxes, plus

• For taxable income from $416,701 to $418,400, you pay 35% of it in taxes, plus

• For taxable income at or above $418,401, you pay 39.6%.

At the end of 2017, the House proposed a new tax plan: (http://www.businessinsider.com/tax-brackets-2018-trump-tax-plan-chart-house-senate-comparison-2017-11)

Proposed New Tax Plan:

• For taxable income from $0 to $45,000, you pay 12% of it in taxes, plus

• For taxable income from $45,001 to $200,000, you pay 25% of it in taxes, plus

• For taxable income from $200,001 to $500,000, you pay 35% of it in taxes, plus

• For taxable income of $500,001 or more, you pay 39.6%.

Where the standard deduction was raised to $12,200 and the personal exemption was eliminated. For the remaining exercises, we will only consider this proposed tax plan.

Complete both of the tables below:

Taxable Income
Lower Bound	Upper Bound	Rate	Maximum Money in Bracket	Maximum Tax in Bracket
$0	$45,000	12%		$5,400
$45,000			$155,000
$200,000				$105,000
	No Limit		No Limit	No Limit
Total Income
Lower Bound	Upper Bound	Rate	Maximum Money in Bracket	Maximum Tax in Bracket
$0	$12,200	0%	$12,200	$0
	$57,200		$45,000
				$38,750
$512,200	No Limit		No Limit	No Limit

How many slopes would be on this graph?

Write a function to model the total tax paid, T(x), with a total income of x dollars.

How much does a person pay in taxes if their total income is $210,000?

What is the slope of the line when an individual's total income is $210,000?

For a Total Income of $85,000, an individual would pay $12,350 in taxes.