3. Examine the tax schedule for the years 1914 and 2009 The schedule in 1914 applied to all taxpayers. The schedule for 2009 is for a single taxpayer, Marginal Tax Rate is the rate of tax a taxpayer pays at his/her income level! Marginal Tax Rate 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Over 1914 Tax Brackets SO $20,000 $50,000 $75,000 $100,000 $250,000 $500,000 But not over $20,000 $50,000 $75,000 $100,000 $250,000 $500,000 Marginal Tax Rate 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% Over 2009 Tax Brackets But not over $0 $8,375 $34,000 $82,400 $171,850 $373,650 $8,375 $34,000 $82,400 $171,850 $373,650 a. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in 1914? b. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in 2009? c. Based on the marginal tax rate, find the difference in tax between a single taxpayer 1914 making $25,000 and a single taxpayer in 2009 making the same amount.
3. Examine the tax schedule for the years 1914 and 2009 The schedule in 1914 applied to all taxpayers. The schedule for 2009 is for a single taxpayer, Marginal Tax Rate is the rate of tax a taxpayer pays at his/her income level! Marginal Tax Rate 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Over 1914 Tax Brackets SO $20,000 $50,000 $75,000 $100,000 $250,000 $500,000 But not over $20,000 $50,000 $75,000 $100,000 $250,000 $500,000 Marginal Tax Rate 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% Over 2009 Tax Brackets But not over $0 $8,375 $34,000 $82,400 $171,850 $373,650 $8,375 $34,000 $82,400 $171,850 $373,650 a. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in 1914? b. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in 2009? c. Based on the marginal tax rate, find the difference in tax between a single taxpayer 1914 making $25,000 and a single taxpayer in 2009 making the same amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
This is for financial mathhh please helpp
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3. Examine the tax schedule for the years 1914 and 2009. The schedule in 1914 applied to all
taxpayers. The schedule for 2009 is for a single taxpayer, Marginal Tax Rate is the rate of tax a
taxpayer pays at his/her income level.
Marginal Tax
Rate
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Over
1914
Tax Brackets
SO
$20,000
$50,000
$75,000
$100,000
$250,000
$500,000
But not over
$20,000
$50,000
$75,000
$100,000
$250,000
$500,000
Marginal Tax
Rate
10.0%
15.0%
25.0%
28.0%
33.0%
35.0%
Over
2009
Tax Brackets
But not over
$8,375
$34,000
$82,400
$171,850
$373,650
$0
$8,375
$34,000
$82,400
$171,850
$373,650
a. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in
1914?
b. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in
2009?
c. Based on the marginal tax rate, find the difference in tax between a single taxpayer in
1914 making $25,000 and a single taxpayer in 2009 making the same amount."
Transcribed Image Text:r
f
3. Examine the tax schedule for the years 1914 and 2009. The schedule in 1914 applied to all
taxpayers. The schedule for 2009 is for a single taxpayer, Marginal Tax Rate is the rate of tax a
taxpayer pays at his/her income level.
Marginal Tax
Rate
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Over
1914
Tax Brackets
SO
$20,000
$50,000
$75,000
$100,000
$250,000
$500,000
But not over
$20,000
$50,000
$75,000
$100,000
$250,000
$500,000
Marginal Tax
Rate
10.0%
15.0%
25.0%
28.0%
33.0%
35.0%
Over
2009
Tax Brackets
But not over
$8,375
$34,000
$82,400
$171,850
$373,650
$0
$8,375
$34,000
$82,400
$171,850
$373,650
a. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in
1914?
b. What was the marginal tax rate for a taxpayer with a taxable income of $25,000 in
2009?
c. Based on the marginal tax rate, find the difference in tax between a single taxpayer in
1914 making $25,000 and a single taxpayer in 2009 making the same amount.
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