Assume that in year 1 you pay an average tax rate of 25 percent on a taxable income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is

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The Answer of Assume that in year 1 you pay an average tax rate of 25 percent on a taxable income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is

Assume That in Year 1 You Pay an Average Tax