Question

Hel

A certain state uses the following progressive

tax rate for calculating individual income tax:

Income Progressive

Range ($) Tax Rate

0 - 2000

2%

2001 - 9000 5%

9001 and up

5.4%

Calculate the state income tax owed on a $50,000

per year salary.

tax = $[?]

Round your answer to the nearest whole dollar amount.

Answer 1

The state income tax owed on a $50,000 salary, calculated using progressive taxation rates of 2%, 5%, and 5.4% for different income ranges, is $2,604.

Step-by-step explanation:

To calculate the state income tax owed on a $50,000 salary using the progressive taxation system provided, we need to calculate the tax for each income range separately and then sum them up.

1. For the first $2,000, the tax rate is 2%. So, $2,000 x 0.02 = $40.
2. For the next $7,000 ($2,001 to $9,000), the tax rate is 5%. So, $7,000 x 0.05 = $350.
3. For the remaining income ($9,001 and up), the tax rate is 5.4%. Since the salary is $50,000, the remaining amount is $50,000 - $9,000 = $41,000. So, $41,000 x 0.054 = $2,214.

Now, we add all these amounts to find the total tax owed: $40 + $350 + $2,214 = $2,604. Therefore, the state income tax owed on a $50,000 salary is $2,604 (rounded to the nearest whole dollar).