How much income would Joe have to make for the 17% flat rate to match his 2013 taxable income?
So from the table I get
44, 603.25 + .33 (300,000 - 183,250) = 83, 130.75
I did trial and error and came up with 489, 004.40 = 83,130.748 = 83,130.75 The second part is wrong because I tried this answer. First part is correct.
Sorry, can't read your table!! It is just too faint even with my reading glasses!. All you have to do is figure out how much tax Joe would pay using your table of various brackets of tax rates. Then, once you figure out the amount he would pay, you would take that tax amount and divide it by 17%. So, for example, if Joe paid $45,000 in tax under the old scheme, then he would have to have a taxable income of: $45,000 / 0.17 =$264,705.88 - This would be Joe's taxable income under a flat rate of 17%.
