What is Alice's tax under the current laws?

Question

Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Alice was single in the year 2016 with a taxable income of $43,000.

Use the 2016 Tax Table for Singles to find Alice's tax under the current laws.

Answer 1

Taxable income is $43,000.

Filing status of taxpayer is single.

Taxpayer is in 25% slab.

Tax applicable = $5,183.75 + (taxable income - $36,650) × 25%

Tax = $5,183.75 + ($43,000 - $36,650) × 25%

= $6,771.25