However, in 2013, the tax rates varied based on your taxable income. The following table shows that
Question:
However, in 2013, the tax rates varied based on your taxable income. The following table shows that for incomes up to $12,750 the tax rate was 6%. If someone had a taxable income of $35,000, they would pay 6% of the first $12,750 (which equals $765). Then they would pay 7% on the amount over$12,750 up to $35,000. They would pay 7% on $22,250. (This number comes from $35000 - $12,750). If the person had an income above $60,000 the portion OVER $60,000 would be charged 7.75%. The total amount of taxes due would be calculated as listed in column 3 of the following chart.
And taxable income is more than: | But not over: | Your tax is: |
$0 | $12,750 | 6% of the NC taxable income amount |
$12,750 | $60,000 | $765 + 7% of the amount over $12,750 |
$60,000 | --- | $4,072.50 + 7.75% of the amount over$60,000 |
Using the above chart, calculate the amount of tax a person filing taxes in 2013 would have paid if they had a taxable income of $50,000. Round to two decimal places
Then, assuming a flat tax of 6.5%, how much would the same person have paid in taxes? Round to two decimal places.
-Which method causes the person to pay the most taxes?
-How much more would they pay?
-As of 2018, the federal government has yet to institute a flat tax. The charts below indicate the 2018 tax rates for single and married filing jointly for each category of income.
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen