Question: 1 the marginal tax brackets in a certain year are...
1. The marginal tax brackets in a certain year are 10% of taxable income between $0 and $ 10,000 and 20% of taxable income between $ 10,001 and $20,000. Anne has a taxable income of $10,000 and is worried that a slight increase in salary would put her into a higher tax bracket. Despite her best efforts, she does, indeed, get a small raise of $90, which makes her taxable income $10,090 instead of $10,000. By what percentage does her total tax bill increase as a result?
4. Anita is a single taxpayer with wages totaling $66,000 in 2018. She takes the standard deduction of $12,000 and pays the tax calculated from Table 1. What percentage of her TOTAL INCOME does she pay as tax? (Give the percentage correct to 2 decimals, e.g. for 11.2345%, record answer as 11.23)
NOTE: Do not round any intermediate calculations, or you may get the wrong answer.
5. Taneesha has a total income of $100,000 all from long term
sales of stocks. She takes the standard deduction of $12000 and
pays tax on her resulting taxable income according to the last
column of Table 3 (long term capital gains). This amounts to paying
nothing on the first $38,600 and 15% on the rest. What percentage
of her TOTAL INCOME does she pay as taxes? (Give answer correct to
2 decimal places.)
NOTE: Taneesha's percentage will be significantly lower than Anita's, even though Taneesha has a much higher income. This is because the tax system favors investors over salaried individuals.