161k views
4 votes
due to the same law, persons earning $500,000 per year had lower taxes removed from their paychecks on the first $106,800 they earned, saving them 2% of this portion of their salary. The same persons also received $14,250 more on their federal tax return. Fill in the blanks to complete the statement below. A person earning $500,000 a year received $______ more or______ % more of their income. Round to the nearest dollar and to the nearest tenth of a percent.

1 Answer

4 votes
Given that the person earning $500,000 had a lower tax removed from them on the first $106,800 they earned, the amount saved if this portion was:
2/100*106,800
=$2136
amount received on federal tax return was $14,250

Total amount saved from taxes was:
14250+2136
=$16,386
this is equivalent to 16,386/500000=0.032772~3.28%
hence the answer is:
A person earning $500,000 a year received $16,386 more or 3.28% more of their income.
User Redbox
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories