Suppose the income tax structure is as follows: the first $16,000 is taxed at 10%, the remainder is taxed at 35%. Compute the tax on an income of $40,000. Now suppose that inflation is 5% and you receive a cost of living (5%) raise to $42,000. Compute the tax on this income. To compare the taxes you should adjust the tax for inflation (add 5%).

Question

Suppose the income tax structure is as follows: the first $16,000 is taxed at 10%, the remainder is taxed at 35%. Compute the tax  on an income of $40,000. Now suppose that inflation is 5% and you receive a cost of living (5%) raise to $42,000. Compute the tax  on this income. To compare the taxes you should adjust the tax  for inflation (add 5%).

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The Answer of Suppose the income tax structure is as follows: the first $16,000 is taxed at 10%, the remainder is taxed at 35%. Compute the tax  on an income of $40,000. Now suppose that inflation is 5% and you receive a cost of living (5%) raise to $42,000. Compute the tax  on this income. To compare the taxes you should adjust the tax  for inflation (add 5%).

Suppose the Income Tax Structure Is as Follows: the First