If a person makes $50,000 and their tax with a progressive tax rate 0 to 2000 is 2% 2001-9000 is 5% and 9001 and up is 5.4% what is the tax paid
To calculate the tax paid, we will apply the progressive tax rates for the different income ranges.
First, let's find the tax for the first income range: 0 to 2000 at a rate of 2%. Since the person's income is $50,000, and this range does not cover any part of the income, the tax for this range is 0.
Next, let's determine the tax for the second income range: 2001 to 9000 at a rate of 5%. The income for this range is the difference between $9000 and $2000, which is $7000. So, the tax for this range is:
$7000 × 0.05 = $350
Finally, let's calculate the tax for the third income range: 9001 and up at a rate of 5.4%. The income for this range is the remaining amount after accounting for the first two ranges, which is $50,000 - $9000 = $41,000. Thus, the tax for this range is:
$41000 × 0.054 = $2,214
To find the total tax paid, we sum up the taxes from each income range:
Total tax paid = Tax for range 1 + Tax for range 2 + Tax for range 3
Total tax paid = $0 + $350 + $2,214
Total tax paid = $2,564
Therefore, the tax paid for a person with an income of $50,000, subject to the given progressive tax rates, would be $2,564.