Question

poz. 31 (Crauder/Evans/Noell, pp. 58-59 c. Use und Formula Ourobtined in part to calculate the value for part to calculate the value for nart b 3. Oklahoma Income Tax: The amour ancome Tax: The amount of tax TET in dollars owed to the State of Oklahoma is a una the adjusted gross income I (in dollars at least over a suitably restricted range of incomes. According to the 1994 Oklahoma Income Tax tables, a single Oklahoma resident taxpayer with an adju resident taxpayer with an adjusted gross income of $15,000 owes $780 in Oklahoma income tax. In functional notation this is T(15,000) adjusted gross income is $15,500, then the tables show a tax liability of $825. a. Calculate the rate of change in T with respect to I and explain in practical terms what it means. dow much does the taxpayer owe if the adjusted gross income is $15,350? (Crauder/Evans/Noell, PP. 159- 160)

Answer 1

Rate of change in T with respect to rate of change in I = {(825-750)/(15500-15000)}*100 = 9%

It means that till adjusted total income of $15000 the rate of tax will be 780$ and any additional income thereafter will be tax at 9%. Its a semi - variable tax structure.

Therefore when adjusted total income is $15350 the tax = 750$ + $(350*9%) = $811.5