Need help with calculations

Question

At the end of 2017, the House proposed a new tax plan: (http://www.businessinsider.com/tax-brackets-2018-trump-tax-plan-chart-house-senate-comparison-2017-11)

Proposed New Tax Plan:

• For taxable income from $0 to $45,000, you pay 12% of it in taxes, plus

• For taxable income from $45,001 to $200,000, you pay 25% of it in taxes, plus

• For taxable income from $200,001 to $500,000, you pay 35% of it in taxes, plus

• For taxable income of $500,001 or more, you pay 39.6%.

Where the standard deduction was raised to $12,200 and the personal exemption was eliminated. For the remaining exercises, we will only consider this proposed tax plan.

Lower Bound	Upper Bound	Rate	Maximum Money in Bracket	Maximum Tax in Bracket
$0	$45,000	12%	$5,400
$45,000	$155,000
$200,000	$105,000

$ 500,000 no limit 39.6% no limit. no limit

Total Income

Lower Bound	Upper Bound	Rate	Maximum Money in Bracket	Maximum Tax in Bracket
$0	$12,200	0%	$12,200
	$57,200
$512,200

Answer 1

For incomes in the range 0 to 45,000: tax = 45000 x 12/100 = 5400. The tax range would be from $0 to $5,400

For incomes in the range 45,001 to 200,000: tax = 45001 x 25/100 =11250.25 , 200000 x 25/100 = 50000. The tax would range from $11,250.25 to $50,000

For incomes in the range 200001 to 500000: tax = 200001 x 35/100 = 70000.35, 500000 x 35/100=175000. The tax would range from $70,000.35 to $175,000

For incomes above 500001: tax = 500001 x 39.6/100 = 198000.396.

The minimum tax would be $198000.396

Total Income

Lower bracket :0+1220= $12,200

Incomes between $45,000 and below $500,000 = 45000 + 12200= $57,000

Incomes $500,000 and up. 500000+12200= $512,200