Mr. Hoosier has gathered all these data about his finances.

Salary $159,000

Taxable interest $5,600

Municipal Bond interest $15,000

Total Itemized deductions $9,500

The personal exemption is $4700. The standardized deduction for a single filer is 5000.





Single Filer

If Taxable Income is Then tax is:

0-8000 10% of the amount over 0

8000- 35,000 800 + 15% of the amount over 8000

35000- 55,000 4850 + 20% of the amount over 35000

55000- 150,000 8850 + 30% of the amount over 55000

150000 – 200000 37350 + 35% of the amount over 150000

200000 and over 54850 + 40% of the amount over 200000



Married filing jointly:

If Taxable Income is Then tax is:

0-8000 10% of the amount over 0

8000- 35,000 800 + 18% of the amount over 8000

35000- 55,000 4850 + 22% of the amount over 35000

55000- 150,000 8850 + 35% of the amount over 55000

150000 – 200000 37350 + 37% of the amount over 150000

200000 and over 54850 + 45% of the amount over 200000



Please answer each question and you must show your work in order to get partial credit.



What is his average effective tax rate?