Taxable income rises by $1,515 and taxes rise by $590.85.What is the marginal tax rate?

Name: Taxable income rises by $1,515 and taxes rise by $590.85.What is the marginal tax rate?
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Question

Quizplus · Accepted Answer

The marginal tax rate can be calculated as the ratio of the change in taxes to the change in taxable income. Therefore, marginal tax rate = change in taxes/change in taxable income = $590.85/$1,515 = 0.39 = 39% (rounded to the nearest whole number). Therefore, the correct answer is B, 39 percent.

Taxable Income Rises by $1,515 and Taxes Rise by $590