Problem

Income Tax The 2010 U.S. federal income tax owed by a married couple filing jointly can be...

Income Tax The 2010 U.S. federal income tax owed by a married couple filing jointly can be found from the following table.

Filing Status: Married Filing Jointly

If Taxable Income Is between

Tax Due Is

of the Amount over

$0–$16,750

10%

$0

$16,750–$68,000

$1675 + 15%

$16,750

$68,000–$137,300

$9362.50 + 25%

$68,000

$137,300–$209,250

$26,687.50 + 28%

$137,300

$209,250–$373,650

$46,833.50 + 33%

$209,250

$373,650–up

$101,085.50 + 35%

$373,650

a. Write the piecewise-defined function T with input x that models the federal tax dollars owed as a function of x, the taxable income dollars earned, with 0<x ≤ 137,300.


b. Use the function to find T(42,000).


c. Find the tax owed on a taxable income of $65,000.


d. A friend tells Jack Waddell not to earn anything over $68,000 because it would raise his tax rate to 25% on all of his taxable income. Test this statement by finding the tax on $68,000 and $68,000 + $1. What do you conclude?

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