Question

A veterinarian earns an annual income of $278,600. the income tax the veterinarian must pay is 8%. what is the amount of income tax in dollars and cents that the veterinarian must pay?

Answer 1

A veterinarian with an annual income of $278,600 at a tax rate of 8% must pay $22,288 in income tax. This is a simple percentage calculation.

Step-by-step explanation:

The veterinarian must pay 8% of their annual income in taxes. To calculate the income tax in dollars and cents, we multiply the annual income, $278,600, by the tax rate of 0.08 (8%).

Income Tax = Annual Income × Tax Rate = $278,600 × 0.08 = $22,288.

Therefore, the veterinarian would be responsible for paying $22,288 in income tax. This calculation is a straightforward mathematical operation involving percentages and gives an idea of the fixed percentage of taxes one must pay on their income, known in economics as the average tax rate. Despite the complexity of the real-world tax systems which often have progressive tax rates, deductions, and credits impacting the final tax amount, this scenario assumes a flat tax rate for simplicity.