The federal income tax (as of 2014) has seven tax brackets, ranging from 10% to 39.6% of taxable income. But even if you are in a high tax bracket, not all of your income is taxed at that percent. The first $9075 of your income would be taxed at 10%, the next interval at 15%, then 25%, etc. Let’s devise a simpler plan: 15% on the first $90,000 of taxable income and 30% on all income above $90,000.
a. Let a denote taxable income and let T(a) be the tax on that income. Find a piece-wise formula for T(a). Be sure to define what interval of the domain each “piece” is for.
I was thinking something like = .15 if x < $90,000
.3 if x > $90,000
Is that right? Or is it more complicated?
a. Let a denote taxable income and let T(a) be the tax on that income. Find a piece-wise formula for T(a). Be sure to define what interval of the domain each “piece” is for.
I was thinking something like = .15 if x < $90,000
.3 if x > $90,000
Is that right? Or is it more complicated?