If Heather's tax liability increases from $10,000 to $13,500 when her income increases from $30,000 to $40,000, her marginal tax rate is
A) 33 percent.
B) 35 percent.
C) 50 percent.
D) 60 percent.

Question

Quizplus · Accepted Answer

Heather's income increased by $10,000, and her tax liability increased by $3,500 ($13,500 - $10,000). This means her marginal tax rate is 35% ($3,500/$10,000).

If Heather's Tax Liability Increases from $10,000 to $13,500 When