Ray earns an income of $250,000 per year in Country X. Suppose for the year 2014 there is a proportional tax rate of 22%. Also suppose for the year 2015 that the country follows the federal income tax bracket, as shown below. What will be the change in the direction and the amount of income tax paid by Ray? Taxable income between $0 and $9,225 $9,226 and $37,450 $37,451 and $90,750 $90,751 and $189,300 $189,301 and $411,500 Federal income tax bracket 10 percent 15 percent 25 percent 28 percent 33 percent $411,501 and $413,200 35 percent There will be $413,201 and above 39.6 percent ▾ in the income tax paid by Ray in the year 2015 as compared to the year 2014 by $ (Round your answer to two decimal places.)
Ray earns an income of $250,000 per year in Country X. Suppose for the year 2014 there is a proportional tax rate of 22%. Also suppose for the year 2015 that the country follows the federal income tax bracket, as shown below. What will be the change in the direction and the amount of income tax paid by Ray? Taxable income between $0 and $9,225 $9,226 and $37,450 $37,451 and $90,750 $90,751 and $189,300 $189,301 and $411,500 Federal income tax bracket 10 percent 15 percent 25 percent 28 percent 33 percent $411,501 and $413,200 35 percent There will be $413,201 and above 39.6 percent ▾ in the income tax paid by Ray in the year 2015 as compared to the year 2014 by $ (Round your answer to two decimal places.)
Chapter16: The Public Sector
Section: Chapter Questions
Problem 7SQP
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Transcribed Image Text:Ray earns an income of $250,000 per year in Country X. Suppose for the year 2014 there is a proportional tax rate of
22%. Also suppose for the year 2015 that the country follows the federal income tax bracket, as shown below.
What will be the change in the direction and the amount of income tax paid by Ray?
Taxable income between
$0 and $9,225
$9,226 and $37,450
$37,451 and $90,750
$90,751 and $189,300
$189,301 and $411,500
Federal income tax bracket
10 percent
15 percent
25 percent
28 percent
33 percent
$411,501 and $413,200
35 percent
There will be
$413,201 and above
39.6 percent
▾ in the income tax paid by Ray in the year 2015 as compared to the year 2014 by $
(Round your answer to two decimal places.)
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