Question

A certain state uses the following progressive
tax rate for calculating individual income tax:
Income
Progressive
Tax Rate
Range ($)
0-2000
2001 – 9000
9001 and up
Calculate the state income tax owed on a $50,000
per year salary.
tax = $[?]
Round your answer to the nearest whole dollar amount.
2%
5%
5.4%

Answers

  1. The state income tax owed on $50,000 per year salary is $2,604
    What is progressive tax?
    Progressive tax system  charges individual’s earnings to taxes with higher tax rates as the earnings increase.
    In this case, the first $2000 is charged to tax at 2%, the next $7000($9000-$2000) is charged to tax at 5% and any amount above $9,000 has tax rate of 5.4%, evidently, higher tax rates apply higher income thresholds.
    Tax on the first $2000=$2000*2%
    Tax on the first $2000=$40
    Tax on the next $7000=$7000*5%
    Tax on the next $700=$350
    Tax on the balance above $9000=($50000-$9000)*5.4%
    Tax on the balance above $9000=$41,000*5.4%
    Tax on the balance above $9000=$2,214
    Total taxes owed on $50,000 yearly salary=$40+$350+$2,214
    Total taxes owed on $50,000 yearly salary=$2,604
    Find out more about progressive tax on:https://brainly.com/question/16653199
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