Question

In reviewing the tax rate schedule for a single taxpayer, Chuck notes that the tax on $75,000 is $4,867.50 plus 25 percent of the taxable income over $35,350. What does the $4,867.50 represent?

Answer 1

The $4,867.50 represents the tax owed by a single taxpayer on an income of $75,000.

Step-by-step explanation:

The $4,867.50 represents the tax owed by a single taxpayer on an income of $75,000. According to the tax rate schedule mentioned, the tax on $75,000 is calculated as $4,867.50 plus 25 percent of the taxable income over $35,350. Therefore, the $4,867.50 is the base tax owed for an income of $35,350, with an additional 25 percent of the taxable income over $35,350 added to it.