Scenario 12-3
A taxpayer faces the following tax rates on her income:

20 percent of the first $\$ 40,000$ of her income;
30 percent of all her income above $\$ 40,000$.
-Refer to Scenario 12-3. The taxpayer faces

Question

Scenario 12-3
A taxpayer faces the following tax rates on her income:
​
 20 percent of the first $\$ 40,000$ of her income;
30 percent of all her income above $\$ 40,000$.
-Refer to Scenario 12-3. The taxpayer faces

Quizplus · Accepted Answer

At an income of $60,000, the taxpayer pays 20% on the first $40,000 ($8,000) and 30% on the next $20,000 ($6,000), totaling $14,000 in taxes. The average tax rate is $14,000 / $60,000 = 23.33%, rounded to 23%.

Scenario 12-3 a Taxpayer Faces the Following Tax Rates on Her

Scenario 12-3
a Taxpayer Faces the Following Tax Rates on Her