Assume that in year 1 you pay an average tax rate of 25 percent on a taxable Income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable Income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is Mutiple Choice percent. 40 percent 35 percent 20 percent
Assume that in year 1 you pay an average tax rate of 25 percent on a taxable Income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable Income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is Mutiple Choice percent. 40 percent 35 percent 20 percent
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
Problem 3CQQ
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