Lee's 2013 taxable income is $88,000 before considering charitable contributions.Lee is a single individual.She makes a donation of $10,000 to the American Heart Association in December 2013.By how much did Lee's marginal tax rate decline simply because of the donation?

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The donation reduces Lee's taxable income to $78,000, which is in the 25% tax bracket. Her original taxable income of $88,000 was in the 28% tax bracket. Therefore, her marginal tax rate declined by 3%.

Lee's 2013 Taxable Income Is $88,000 Before Considering Charitable Contributions