-Refer to Table 17-9. Sylvia is a single taxpayer with an income of $70,000. What is her marginal tax rate and what is her average tax rate?
A) marginal tax rate = 30%; average tax rate = 30%
B) marginal tax rate = 8%; average tax rate = 19.3%
C) marginal tax rate = 30%; average tax rate = 22.5%
D) marginal tax rate = 20%; average tax rate = 30%

Question

-Refer to Table 17-9. Sylvia is a single taxpayer with an income of $70,000. What is her marginal tax rate and what is her average tax rate?
A) marginal tax rate = 30%; average tax rate = 30% 
B) marginal tax rate = 8%; average tax rate = 19.3% 
C) marginal tax rate = 30%; average tax rate = 22.5% 
D) marginal tax rate = 20%; average tax rate = 30%

Quizplus · Accepted Answer

The marginal tax rate is the rate at which the last dollar of income is taxed, which, based on the provided tax brackets, would be 30% for an income of $70,000. The average tax rate is calculated by dividing the total tax paid by the total income, which would result in a lower percentage than the marginal rate, indicating 22.5% in this scenario.