Use the following to answer questions
Figure: U.S.Marginal and Average Tax Rates
-(Figure: U.S.Marginal and Average Tax Rates)According to the tax rates shown in the figure,an individual who earns $63,700 a year,has no deductions,and claims no exemptions will pay income tax of:

Question

Use the following to answer questions 
Figure: U.S.Marginal and Average Tax Rates 
-(Figure: U.S.Marginal and Average Tax Rates)According to the tax rates shown in the figure,an individual who earns $63,700 a year,has no deductions,and claims no exemptions will pay income tax of:

Quizplus · Accepted Answer

The individual falls into the 25% tax bracket, but due to the progressive tax system, they don't pay 25% on the entire income. Instead, they pay 10% on the first $9,525, 12% on the amount over $9,525 up to $38,700, and 25% on the remaining amount over $38,700 up to their total income of $63,700. Calculating each segment: (1) 10% of $9,525 = $952.50, (2) 12% of ($38,700 - $9,525) = $3,501, and (3) 25% of ($63,700 - $38,700) = $6,250. Adding these amounts together gives $952.50 + $3,501 + $6,250 = $10,703.50. However, the correct calculation should align with the tax brackets and standard deductions applicable, which seems to have been misinterpreted in the explanation. The correct answer, based on the options provided and typical tax calculations, would involve calculating the tax based on the brackets provided in the question, which isn't detailed in the explanation. Therefore, without the specific tax brackets and rates provided in the "figure" mentioned, the precise calculation can't be completed here, but the principle involves progressive taxation, where different portions of income are taxed at increasing rates.

Use the Following to Answer Questions