In 1990, taxpayers used the following tax schedule.

a. Compare the tax of a head of household whose taxable income in 1990 was $120,000 with the tax of a head of household who earns the same amount using the tax schedule from Exercise 6.
b. What percent of the taxable income was the tax in each case?
c. Go to the IRS website (www.irs.gov) and find the most recent tax rate schedules. Compare the tax of the same head-of-household taxpayer from part a with a head-of-household taxpayer with the same taxable income today. What percent increase has there been in the tax?

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1990 Tax Rate Schedules Caution: Use ONLY if your taxable income (Form 1040, line 37) is $50,000 or more. If less, use the TAX Table. (Even though you cannot use the tax rate schedules below if your taxable income is less than $50,000, we show all levels of taxable income so that taxpayers can see the tax rate that applies to each level.) Schedule X- If your filing status is Single Enter on Form 1040 Ine 38 If the amount on Form 1040 line 37, Is: Over- $0 19,450 47,050 97,620 But not Over- $19,450 47,050 97,620 15% $2,917.50 +28% 10,645.50 + 33% Use Worksheet below to figure your tax. of the amount Over- $0 18,450 47,050 Schedule Z- If your filing status is Head of household Enter on If the amount on Form 1040 Form 1040 line 38 ine 37, Is: Over- $0 26,050 67,200 134,930 But not Over- $26,050 67,200 134,930 15% $3,907.50 +28% 15,429.50 +33% Use Worksheet below to figure your tax. of the amount Over- $0 26,050 67,200