The US uses a progressive approach to income taxes. Tax rates for 2011 (for singles) are
10% taxable income from 0 to $8,500
15% over $8,500 to $34,500
25% over $34,500 to $83,600
28% over $83,600 to $174,400
33% over $174,400 to $379,150
35% over $379,150
There are also a variety of deductions, credits, exclusions, etc., etc. (This isn’t a class in tax policy.) We
will ignore deductions in this example.
Tax credits are deducted off of the tax due after it is calculated. If, after all of the tax calculations are
done, you have tax credits, these are subtracted from the amount you pay. Tax credits are more desirable
than tax deductions, but they are both good things. For example, there are tax credits allowed for
1. Earned Income tax credit $457 for single taxpayer
2. Child and dependent care up to 35% of qualifying expenses
In this lab, you will get the opportunity to CREATE YOUR OWN TAX RULES and write a program that
calculates the taxes due based on user-entered income amount. Here are the guidelines:
1. At least 4 tax brackets (must be greater than 0%).
2. At least 2 tax credits. You must write the rule and explain how it will be implemented for each.
Do I need variables for each bracket and also each percent?