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UPDATED
TAX RATES, ETC.
(March, 2007)
Math for Business and Life was written to provide up-to-date
information for solving business problems - not only for the business
person - but also for the consumer and investor. Some of the information
in the text is time-sensitive, such as tax rates, indexes, etc. To help
keep abreast of current data, we are providing updates. This updated information
can be shared with students to let them know what is changing. The new
data is not intended to be used to solve problems in the text;
solutions are still based on the original data in the text.
Minimum wage
As of March 16, 2007, the federal minimum wage is the same as in the text ($5.15/hr)
2007 FICA tax rates
Social Security; 6.2% of the first $97,500
Medicare: 1.45% on all wages (no limit)
2007 Wage Bracket Method for Withholding Federal Income Tax
Tables are extensive. See IRS Publication 15 (Rev. Jan, 2007), Circular E,
pages 39-58.
2007 Percentage Method for Withholding Federal Income Tax
Part 1
Weekly: $65.38; Biweekly: $130.77; Semimonthly: $141.67; Monthly: $283.33
Quarterly: $850.00; Semiannually: $1,700; Annually: $3,400; Daily: $13.08
Part 2
Tables are extensive. See IRS Publication 15 (Rev.Jan, 2007), Circular E,
pages 37-38.
2007 FICA tax for the self-employed
1. Multiply net income by 92.35%
2. If the result is $400 or more, the FICA tax is: 15.3% of the first $97.500
+ 2.9% of the remainder.
CHAPTER 10
Consumer Price Index: 177.1 for 2001; 179.9 for 2002; 184.0 for 2003; 188.9 for 2004; 195.3 for 2005; and 201.6 for 2006
CHAPTER 14
Dow
Jones Industrial Average, March 16, 2007
Closed at 12,110.41, down 49.27 from the previous
day.
CHAPTER 15
Monetary Exchange Rates, March 16, 2007
British pound
Canadian dollar
Euro
French franc
German mark
Italian lira
Japanese yen
Mexican peso
Swiss franc
.514854
1.1738
.751484
Now using the Euro
Now using the Euro
Now using the Euro
116.77
11.158
1.2079
CHAPTER 20
2006
Tax Rate Tables
Tables are extensive. See the IRS instructions
for Form 1040, (pages 67-78)
2007 Tax Rate Schedule
Use only if your taxable income is $100,000 or more. If less, use the Tax Table. Even if you cannot use the Tax Rate Schedules below if your taxable income is less than $100,000, all levels of taxable income are shown so taxpayers can see the tax rate that applies to each level.
Schedule X - Single
If taxable income
is over
$0
7,825
31,850
77,100
160,850
349,700
But
not over
$7,825
31,850
77,100
160,850
349,700
..........
The
tax is
...............10%
$782.50 + 15%
4,386.25 + 25%
15,698.75 + 28%
39,148.75 + 33%
101,469.25 + 35%
of
the amount over
$0
7,825
31,850
77,100
160,850
349,700
Schedule Y-1 - Married Filing Jointly or Qualifying Widow(er)
If taxable income
is over
$0
15,650
63,700
128,500
195,850
349,700
But
not over
$15,650
63,700
128,500
195,850
349,700
...........
The
tax is
...............10%
$1,565.00 + 15%
8,772.50 + 25%
24,972.50 + 28%
43,830.50 + 33%
94,601.00 + 35%
of
the amount over
$0
15,650
63,700
128,500
195,850
349,700
Schedule Y-2 - Married Filing Separately
If taxable income
is over
$0
7,825
31,850
64,250
97,925
174,850
But
not over
$7,825
31,850
64,250
97,925
174,850
...........
The
tax is
...............10%
$782.50 + 15%
4,386.25 + 25%
12,486.25 + 28%
21,915.25 + 33%
47,300.50 + 35%
of
the amount over
$0
7,825
31,850
64,250
97,925
174,850
Schedule Z - Head of Household
If taxable income
is over
$0
11,200
42,650
110,100
178,350
349,700
But
not over
$11,200
42,650
110,100
178,350
349,700
...........
The
tax is
...............10%
$1,120.00 + 15%
5,837.50 + 25%
22,700.00 + 28%
41,810.00 + 33%
98,355.55 + 35%
of
the amount over
$0
11,200
42,650
110,100
178,350
349,700