If Mary earns $80,000 in taxable income and pays $40,000 in taxes,her marginal tax rate is 50 percent.

Name: If Mary earns $80,000 in taxable income and pays $40,000 in taxes,her marginal tax rate is 50 percent.
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Marginal tax rate refers to the rate at which the last dollar of income is taxed, not the average tax rate. The average tax rate here is 50%, but without knowing the tax brackets, we can't determine the marginal rate.

If Mary Earns $80,000 in Taxable Income and Pays $40,000