Table 12-10
The following table shows the marginal tax rates for unmarried individuals for two years.

-Refer to Table 12-10.For an individual who earned $80,000 in both years,which of the following statements is true regarding the individual's marginal tax rate?
A) The marginal tax rate is higher in 2006 than in 2005.
B) The marginal tax rate is the same in 2006 as it was in 2005.
C) The marginal tax rate is lower in 2006 than in 2005.
D) With a proportional tax,as in 2006,it is not possible to determine the individual's marginal tax rate so it is not possible to compare the marginal tax rates in the two years.

Question

Table 12-10
The following table shows the marginal tax rates for unmarried individuals for two years.
 
-Refer to Table 12-10.For an individual who earned $80,000 in both years,which of the following statements is true regarding the individual's marginal tax rate?
A) The marginal tax rate is higher in 2006 than in 2005. 
B) The marginal tax rate is the same in 2006 as it was in 2005. 
C) The marginal tax rate is lower in 2006 than in 2005. 
D) With a proportional tax,as in 2006,it is not possible to determine the individual's marginal tax rate so it is not possible to compare the marginal tax rates in the two years.

Quizplus · Accepted Answer

According to the table, the marginal tax rate for an individual earning $80,000 in 2005 is 25% and in 2006 it is 22%, which is lower. Therefore, the correct answer is C) The marginal tax rate is lower in 2006 than in 2005.

Table 12-10 The Following Table Shows the Marginal Tax Rates for Unmarried