tax shelters for individuals
Tax Question?
This table shows the tax rates for a single taxpayer in 2002.
Tax Rate Tax Bracket
10% $0 – $6,000
15% $6,001 – $27,950
27% $27,951 – $67,700
30% $67,701 – $141,250
35% $141,251 – $307,050
38.6% Over $307,050
2.4. An accountant claims that she has found a legal way for the single individual who earns $100,000 to shelter $1 of taxable income. (Sheltering some income means avoiding income tax on that income. For example, someone who has $50,000 in income and shelters $10,000 pays income tax only on $40,000.) What is the maximum amount that the single individual earning $100,000 is willing to pay to learn this strategy and reduce taxable income by $1?
A. $0.50
B. $1.00
C. $0.30
D. $0.24
Please tell me how you got to the answer, so i can learn to do this on my own
The question is one of comparing your tax savings to what you pay to get the tax savings. Don’t overthink the problem.
If you save $1, you’re really saving that very last dollar of the $100,000, and it’s a dollar that will be taxed at the highest bracket (30%).
The most you should be willing to pay to save that dollar is up to the amount of savings, or 30c.
MSNBC Investigation – Rachel Maddow Tax Shelter Crackdown
[affmage source="ebay" results="10"]tax shelters for individuals
tax shelters for individuals
tax shelters for individuals
