Marginal tax rates Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year.
a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,300; $61,200; $91,700; $151,000; $253,000; $451,000; and $1.1 million.
b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Explain the relationship between these variables.
Chart is attached.
I need help solving thank you
Extracted text: i More Info Tax Rate - Single Taxpayers -2018 O. Tax calculation (Marginal rate x amount over base bracket) Range of taxable income $0 to Base tax + $9,525 $0 x amount over (10% (12% (22% (24% (32% (35% (37% $0) 9,525) 38,700) 82,500) 157,500) 200,000) 500,000) x amount over 9,525 to 38,700 to 38,700 82,500 953 + 4,454 14,090 32,090 x amount over x amount over x amount over + 82,500 to 157,500 to 200,000 to Over 500,000 157,500 200,000 + + 500,000 45,690 x amount over + 150,690 x amount over + Print Done