Consider an individual who earns $95,000, pays $6,000 in child care expenses for one child, pays the maximum ($25,370)in Registered Pension Plan (RPP)contributions, makes charitable donations of $200 (15 percent credit)and pays $15,000 in medical expenses. Medical expenses in excess of 3 percent of one's net income are deductible at 20 percent. Her statutory marginal tax rate i 15 percent.
What is the federal tax payable? What is the individual's actual or effective marginal tax rate?

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The Answer of Consider an individual who earns $95,000, pays $6,000 in child care expenses for one child, pays the maximum ($25,370)in Registered Pension Plan (RPP)contributions, makes charitable donations of $200 (15 percent credit)and pays $15,000 in medical expenses. Medical expenses in excess of 3 percent of one's net income are deductible at 20 percent. Her statutory marginal tax rate i 15 percent.
What is the federal tax payable? What is the individual's actual or effective marginal tax rate?

Consider an Individual Who Earns $95,000, Pays $6,000 in Child