Answer to Question #292865 in Macroeconomics for Sssrr

Question

Using the current income tax ordinance calculate the amount tax paid by an individual who is earning 50000 per month.

Answer 1

Tax Payable

$0-9950\ @\ 10\%=(9950\times0.1)=950$

$9951-40,525\ @\ 12\%=$ $(40,525-9950)\times0.12=3669$

$40,526-86,375\ @\ 22\%$ $=(50,000-40,525)\times 0.22=2084.5$

$950+3,669+2,084.5=6,703.5$

Total tax payable = 6,703.5

Reference.

Foster, S. (2021, August 18). 2020-2021 tax brackets and federal income tax rates. Bankrate. https://www.bankrate.com/taxes/tax-brackets/