Tax Policy Question
Schedule X — Single
If taxable income
is over-- But not over-- The tax is:
$0 $7,825 10% of the amount over $0
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850
> $349,700 $101,469.25 plus 35% of the amount over 349,700
If the democrats win the election and the new president is able to get the congress to change the tax policy, then the new function will be:
Top two income brackets moved to 36% and 39.9%. Other tax brackets stay the same.
Obaama Plan: http://www.barackobama.com/pdf/taxes/Factsheet_Tax_Plan_FINAL.pdf
Current levels: http://www.moneychimp.com/features/tax_brackets.htm
Your programming task:
1. Write a function called fedTax that takes as input the amount of taxable income earned during the year and returns the amount of federal income tax due the government.
2. Write a second function called ObamaTax that functions the same as fedTax except for the change to the top two income brackets, specified above.
3. Ted DiPlumer learns that his income tax will be the same if the law changes! Assuming that Ted is single, what is the most money he could earn for this to be true?
Ted needs to earn less than $160,850.
4. Zach DeGeek started a software company, earning $400,000 per year. How much more will he pay in taxes under the proposed plan? (Run your functions for tasks 1 and 2 and compare the answers)