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If Your Income Is $40,000 and Your Income Tax Liability

Question 186

Multiple Choice

If your income is $40,000 and your income tax liability is $5,000, your


A) marginal tax rate is 8 percent.
B) average tax rate is 8 percent.
C) marginal tax rate is 12.5 percent.
D) average tax rate is 12.5 percent.

Correct Answer:

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