Assume the marginal tax rate is 10 percent for the first $30,000 of income,15 percent for income between $30,000 and $70,000,and 20 percent for any income over $70,000.If Emily has taxable income equal to $80,000 for the year,what is her tax bill?

Question

Quizplus · Accepted Answer

Emily's taxable income is $80,000.

The first $30,000 of income is taxed at a rate of 10%, which equals:

$30,000 x 0.10 = $3,000

The next $40,000 of income (from $30,000 to $70,000) is taxed at a rate of 15%, which equals:

$40,000 x 0.15 = $6,000

The remaining $10,000 of income (over $70,000) is taxed at a rate of 20%, which equals:

$10,000 x 0.20 = $2,000

The total tax bill is the sum of each of these amounts:

$3,000 + $6,000 + $2,000 = $11,000

Therefore, Emily's tax bill is $11,000.

Assume the Marginal Tax Rate Is 10 Percent for the First