Please show me step by step solution. Please type it in (I don\'t understand han

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Please show me step by step solution. Please type it in (I don't understand handwritting) Thank you!

5. Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Joe was single in the year 2013 with a taxable income of $250,000.
We learn that Joe actually made $500,000, but his taxable income was only $250,000 because of various deductions allowed by the system in 2013. Proponents of the flat tax say that many of these deductions should be eliminated, so the 17% flat tax should be applied to Joe's entire $500,000.
How much income would Joe have to make for the 17% flat tax to equal the amount he pays in the year 2013 with a taxable income of $250,000? (Refer to the 2013 tax table below for tax rates. Round your answer to the nearest cent.) $55,951

Explanation / Answer

Joe have to make $175,740.82 income to make for the 17% flat tax to equal the amount he pays in the year 2013 with a taxable income of $250,000.

This can be explained with the following notes:

First we need to calculate income tax on taxable income $250,000 based on 2013income tax slab rates for single.

As per above calculation we need to pay $66,629.74 for the taxable income of $250,000.

here, we need the income that Joe have to make for the 17% flat tax should be equal to pay $66,629.74 (which is the tax amount on $250,000)

that means 17% of Income =$66,629.74

= income *17% = $66,629.74

= income = $66,629.74 / 17%

Therefore income should be = $391,939.65

Income levels Calculation Tax Amounts on first $89,25 tax is 10% 8925 * 10% 892.5 From 8,926 to 36,250 tax is 15% (36,250 - 8,926)*15%
= 27,324 * 15% 4,098.6 From 36,251 to 87,850 tax is 25% (87,850 - 36,251) * 25%
= 51,599 * 25% 12,899.75 From 87,851 to 183,250 tax is 28% (183,250 - 87,851) * 28%
= 95,399 * 28% 26,711.72 From 183,251 to 398,350 tax is338% (250,000 - 183,251) * 33%
=66,749 * 33%
(here, our taxable income is $250,000) 22,027.17 Total Tax on taxable income of $250,000 based on 2013income tax slab rates for single. $66,629.74

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