Table 12-5

-Refer to Table 12-5. What is the marginal tax rate for a person who makes $37,000?

Question

Table 12-5
 
-Refer to Table 12-5. What is the marginal tax rate for a person who makes $37,000?

Quizplus · Accepted Answer

According to the table, for a person who makes $37,000, the first $9,700 is taxed at 10% and the next $29,300 is taxed at 12%. Therefore, the total tax would be $970 + ($29,300 x 0.12) = $3,514. The marginal tax rate is the tax rate on the last dollar earned, which in this case is 12%. Therefore, the correct answer is B, 9.25%.

Table 12-5 -Refer to Table 12-5. What Is the Marginal Tax Rate