# High-Income Bracket calculations and explanations: ARod

High-income bracket. The expression 90,514.5 +(plus) 0.35(x - (minus) 311,950)

represents the amount for the 2003 federal income tax in dollars for a single taxpayer with x dollars of taxable income, where x is over $311,950 (www.irs.gov).

a) Simplify the expression.

b) Use the graph in the accompanying figure to estimate

the amount of tax for a single taxpayer with a taxable

income of $450,000.

c) Find the amount of tax for MLB player Alex Rodriguez

for 2003. At $22 million he was the highest paid baseball

player that year (www.usatoday.com).

https://brainmass.com/business/accounting/high-income-bracket-calculations-explanations-arod-103648

#### Solution Preview

a. Income tax is computed in layers. Every tax payer receives the benefit of the lower % layers of tax. Below is the 2005 tax table, and if you were to compute each layer, you would agree that is true. For your simplified ...

#### Solution Summary

The solution explains how tax brackets work, and uses baseball player Alex Rodriguez's huge salary to compute a high income taxpayer's tax liability.