medicare_levy_li.R

medicare_levy <- function(income, rate = .02, taper_threshold_lower = 21335, taper_threshold_upper = 26668) {
  if (income < taper_threshold_lower) {
  # People earning below the low income threshold pay no tax
    return(0)
  } else if (income >= taper_threshold_lower & income <= taper_threshold_upper) {
  # People earning income that is between the taper thresholds pay 10 cents for each dollar over the low income threshold
    return((income - taper_threshold_lower) * .1)
  } else {
  # People above the upper taper threshold pay the standard medicare levy
    return(income * rate)
  }
}