Perry has taxable income of $90,000 on which he pays income tax of $18,824.If Perry's taxable income increases by $3,000,he will pay tax of $19,664.Which of the following is correct about Perry's tax rates:

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate of tax paid on the last dollar of income earned. In this case, Perry's marginal tax rate is 21.14%, which is higher than his average tax rate of 20.92%.

Perry Has Taxable Income of $90,000 on Which He Pays