The chart shows how two people with different incomes are taxed. A 4-column table has 2 rows. The first column has entries Citiz
en A, Citizen B. The second column is labeled Income with entries 35,000 dollars, 72,000 dollars. The third column is labeled Tax Rate with entries 11 percent, 11 percent. The fourth column is labeled Taxes paid with entries 3,850 dollars, 7,920 dollars. According to the chart, the citizens are being taxed .
The 7920 dollars entry is wrong. It should be 11% of 38700 + 22% of 33300 = 11583 dollars. The answer previously mentioned was wrong as it didn't consider tax slab.
Explanation:
Hence, we need to calculate based on the tax slab. Till $38700s it is 11% and till $91900s it is 22%, These are head of the family it seems, and that's why this. For a single filer, we have different tax slabs.
