Functions defined on intervals
Income tax (II)
This task deals with the income tax structure of the United Kingdom
(the data is for the years 2003-2004).
In the UK, each person is granted an allowance, a portion of income
that is not taxed at all. The allowance depends
on the person's age. |
| basic allowance |
4615 pounds |
| allowance for people aged 65-74 |
6610 pounds |
| allowance for people aged 75 and over |
6720 pounds |
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The taxable income is obtained by deducting the allowance from the person's yearly income.
Taxes are imposed on the taxable income according to the following schedule:
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Tax rates
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| for each pound under 1920 |
10% |
| for each pound from 1921 to 28,899 |
22% |
| for each pound over 29,000 |
40% |
Use the
Income tax tool
to present the UK tax structure for people of different ages.
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Investigate the effective tax rate, that is, the actual
percentage of one's income that a person pays in income tax.
Use the
Functions on intervals tool
to display a function showing the effective tax rate as a function of income.
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