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(Solved): Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides ...



Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $8,000 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent.

Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, \( \$

Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, \( \$ 8,000 \) a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent. Note: Round your final answers to the nearest whole dollar amount. Required: a. What could Tawana do to reduce her family tax burden? b. How much pretax income does it currently take Tawana to generate the \( \$ 8,000 \) (after-taxes) given to Jonathon? c. If Jonathon worked for his mother's sole proprietorship, what salary would she have to pay him to generate \( \$ 8,000 \) after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)? d. How much money would the strategy in part (c) save?


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