Question: Your readings this week, and the third Application, introduced you to calculating tax. This Application will show you how taxpayers with the same income can

Your readings this week, and the third Application, introduced you to calculating tax. This Application will show you how taxpayers with the same income can have different taxes depending on deductions from their total income. Deductions and exclusions are a large focus in the rest of this course, and this Application should help you understand why. Consider the following four taxpayers: Taxpayer 1 Filing Status: Single Total Income: $135,000 Taxable Income: $87,000 Taxpayer 2 Filing Status: Single Total Income: $135,000 Taxable Income: $107,000 Taxpayer 3 Filing Status: Single Total Income: $100,000 Taxable Income: $68,000 Taxpayer 4 Filing Status: Single Total Income: $100,000 Taxable Income: $84,000 Using the most recent Tax Rate Schedules (located inside the front cover of the course text), calculate the tax on Taxable Income for each taxpayer. Calculate the average, effective, and marginal tax rates for each taxpayer, and submit an Excel spreadsheet with this data. Additionally, submit a Word document explaining the similarities and differences in the rates amongst the taxpayers

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