Find the marginal tax rate for the following levels of corporate earnings before taxes. $13,000, $59,200, $91,500, $200,000, $398,000, $1.5 million, $19.9 million. Plot the marginal tax rates(measured on the y axis) against the pretax income levels(measured on the x axis). Explain the relationship between these variables

 

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Corporate Tax Rate Schedule Range of taxable income $0 to 50,000 to 75,000 to 100,000 to 335,000 to 10,000,000 to 15,000,000 to Over 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 Base tax Tax calculation (Marginal rate x amount over base bracket) x amount over x amount over x amount over x amount over x amount over x amount over x amount over x amount over + $0 + (15% 7,500 + (25% 13,750 + (34% 22,250 + (39% + (34% + (35% 113,900 3,400,000 5,150,000 + (38% 6,416,667 + (35% $0) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) 0 Corporate Tax Rate Schedule Range of taxable income $0 to 50,000 to 75,000 to 100,000 to 335,000 to 10,000,000 to 15,000,000 to Over 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 Base tax Tax calculation (Marginal rate x amount over base bracket) x amount over x amount over x amount over x amount over x amount over x amount over x amount over x amount over + $0 + (15% 7,500 + (25% 13,750 + (34% 22,250 + (39% + (34% + (35% 113,900 3,400,000 5,150,000 + (38% 6,416,667 + (35% $0) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333) 0