If your taxable income rises from $35,000 to $45,000,and the taxes you pay rise from $12,000 to $15,000,your marginal tax rate is

A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 40 percent.
E) Impossible to determine.

Question

Kelvin Jake Sedantes · Accepted Answer

Final Answer : C, Explanation :  The marginal tax rate is calculated as the change in taxes paid divided by the change in taxable income. Here, the change in taxes is $3,000 ($15,000 - $12,000) and the change in income is $10,000 ($45,000 - $35,000). Thus, the marginal tax rate is $3,000 / $10,000 = 0.30 or 30 percent.

If your taxable income rises from $35,000 to $45,000,and the taxes you pay rise from $12,000 to $15,000,your marginal tax rate is

A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 40 percent.
E) Impossible to determine.

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Learning Objectives

Related questions

If your taxable income rises from $35,000 to $45,000,and the taxes you pay rise from $12,000 to $15,000,your marginal tax rate isA) 10 percent.B) 20 percent.C) 30 percent.D) 40 percent.E) Impossible to determine.

Definitions

Learning Objectives

Learning Objectives

Related questions

If your taxable income rises from $35,000 to $45,000,and the taxes you pay rise from $12,000 to $15,000,your marginal tax rate is

A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 40 percent.
E) Impossible to determine.