High-income bracket. The expression
90,514.5 _ 0.35(x _ 311,950) represents the amount for the 2003 federal
income tax in dollars for a single taxpayer with x dollars of taxable
income, where x is over $311,950 (www.irs.gov).
a) Simplify the expression.
b) Use the graph in the accompanying figure to estimate the amount of
tax for a single taxpayer with a taxable income of $450,000.
c) Find the amount of tax for MLB player Alex Rodriguez for 2003. At $22
million he was the highest paid baseball player that year ( HYPERLINK
"http://www.usatoday.com" www.usatoday.com ).
Business Homework Solutions
#103648
High-Income Bracket calculations and explanations
High-income bracket. The expression 90,514.5 +(plus) 0.35(x - (minus) 311,950)
represents the amount for the 2003 federal income tax in dollars for a single taxpayer with x dollars of taxable income, where x is over $311,950 (www.irs.gov).
a) Simplify the expression.
b) Use the graph in the accompanying figure to estimate
the amount of tax for a single taxpayer with a taxable
income of $450,000.
c) Find the amount of tax for MLB player Alex Rodriguez
for 2003. At $22 million he was the highest paid baseball
player that year (www.usatoday.com).
The solution explains how tax brackets work, and uses baseball player Alex Rodriguez's huge salary to compute a high income taxpayer's tax liability.
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