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Primary authority for calculation

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What primary authority is used to calculate the attached problems? See attached file for full problem description.

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Solution Summary

The solution explains what authority would be used for a number of problems.

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(3)
(a) Total taxable income = 2,000 + 55,000 + 10,000 = $67,000
Under the Self-employment section of the Tax Code, the entire amount is taxable at the given rate (30%). Hence his after-tax cash flow is (1 - 0.3)*67,000 = $46,900.

(b) Total taxable income = 2,000 + 55,000 + 50,000 = $107,000
Under the Self-employment section of the Tax Code, only the first $94,200 is taxable at the given rate (30%). Hence his after-tax cash flow is: (107,000 - 94,200) + (1 - 0.3)*94,200 = 12,800 + 65,940 = $78,740.

(5)
(a) There is no way to know how much the plan will ultimately give the employee ...

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