Demonstrate
graphically the cost of income taxation of 30% to consumers and producers for
an income...

Question

Demonstrate
graphically the cost of income taxation of 30% to consumers and producers for
an income of $27,908?How does the taxation change if the income was $220,874? How does this variation affect people and corporations? Use the graph functions of Word or Excel to assist you-You will need two graphs
(one at $27,908 and one at $220,874). Answer the question about variation in a few sentences at the bottom of your
document. Submit as a Word, rich text or Excel attachment. Be thorough and provide additional research citing real-world examples.Use the virtual library to find additional resources and cite your sources.

David · Accepted Answer

Income Tax = 30% of Income 
Case 1: Income = 27,908 
Tax Amount = 30% of $27,908 = $8,372.40 
After tax income = $27,908 – $8,372.40 = $19,535.60 
Effect of tax when income is $ 27908
Case 2: Income = 220,874 
Tax Amount = 30% of $220,874 = $66,262.20 
After tax income = $220,874 - $66,262.20 = $154,611.80
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Effect of tax when income is $ 220874
It can be observed that the amount of tax in case 2 is greater than case 1. This is because the 
taxation is proportional to income.

Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908? How does the taxation change if the income was $220,874? How does this variation affect...

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