Harry's average tax rate on his November income is 15 per cent.The marginal tax rate on his December income of $10 000 exceeds his average tax rate.The tax liability on his December income:

Question

Quizplus · Accepted Answer

Since Harry's marginal tax rate on his income in December is higher than his average tax rate, it means that a larger portion of the income will be taxed at a higher rate. Therefore, his tax liability on his December income will exceed $1500.

Harry's Average Tax Rate on His November Income Is 15