Assume that the marginal tax rate is 10 percent for the first $10,000 of income,20 percent for income between $10,000 and $40,000,and 30 percent for any income over $40,000.If Aaron has taxable income equal to $60,000 for the year,what is his tax bill?

Question

Quizplus · Accepted Answer

Aaron's tax bill is calculated as follows: 10% of the first $10,000 ($1,000), 20% of the next $30,000 ($6,000), and 30% of the remaining $20,000 ($6,000). The total tax bill is $1,000 + $6,000 + $6,000 = $13,000.

Assume That the Marginal Tax Rate Is 10 Percent for the First