Total Income    MinusAdjustments    EqualsAdjusted Gross Inc…

Total Income    MinusAdjustments    EqualsAdjusted Gross Income    MinusStandard Deduction or Itemized Deduction (Taxpayer’s Choice)    AndPersonal Exemptions    EqualsTaxable Income    To which applyRate Schedule or Tax Table    To calculateTax    MinusCredits    EqualsTotal Tax    MinusWithholding, Estimated Payments, and Other PaymentsEqualsTax Refund or Tax Due——————————————— As provided in relevant tax law (e.g., the Federal income tax) , a dollar for dollar reduction in taxes owed/tax liability given certain expenditures by a household or firm (e.g., for installation of energy-saving devices, for child care costs)   is:

In a particular state, a family of three with total before t…

In a particular state, a family of three with total before tax income (AGI) of $100,000 pays an income tax of  $7000, with total before tax income(AGI)  of $50,000 pays $3000, and with total before tax income(AGI)  of $20,000 pays $1000.  If typical (assuming no shifting) , these results suggest that the system is: