Suppose that marginal income tax rates are as follows:Income level Marginal tax rate $0–$10,000 10% $10,000–$50,000 20% Greater than $50,000 35% Also suppose that the taxes for Social Security and Medicare together are 7.65%, and that they are applied to income up to $100,000. If your income is $123,000, what is your total income tax bill and how much will you have paid in Social Security and Medicare taxes? Total income tax: $ Social Security and Medicare taxes: $

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation Β 

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