Suppose the tax rate on the first $20,000 of income is 0%;10% on the next $20,000 earned;and 20% on any additional income earned.The marginal tax rate for a person earning $30,000 is:

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate on the last dollar of income earned. For someone earning $30,000, the last $10,000 is taxed at 10%, making the marginal tax rate 10%.

Suppose the Tax Rate on the First $20,000 of Income