You have a job at a real-estate agency in the small country of Frugalia, where you are paid 72,000 francs (the currency of Frugalia) a year. You are now faced with the decision of whether to work a second job at the local university teaching a real-estate investing class, where the pay is 45,000 francs a year. Social insurance tax and income tax rates are listed below. Social insurance taxes: 7.65% on your first 110,100 francs of total income. Income taxes:
Taxable income (in marks) Tax rate
0–8,700 10%
8,700–35,350 15%
35,350–85,650 25%
85,650–178,650 28%
1. Using the information above, what would be the total amount you pay in social insurance taxes on your second job?
2. What is your income tax bill for the second job?
3. What is your total tax bill for the new job?