If you would have to pay $5,000 in taxes on a $25,000 taxable income and $7,000 on a $30,000 taxable income, then the marginal tax rate on the additional $5,000 of income is
A) 40 percent, and the average tax rate is about 23 percent at the $30,000 income level.
B) 50 percent, and the average tax rate is 40 percent at the $30,000 income level.
C) 40 percent, and the average tax rate is 25 percent at the $25,000 income level.
D) 30 percent, but average tax rates cannot be determined from the information given.
Correct Answer:
Verified
Q22: With respect to state finance, for most
Q23: The main difference between sales and excise
Q24: The average tax rate is
A) equal to
Q25: The marginal tax rate is
A) the difference
Q26: Approximately what percentage of local government expenditures
Q28: Taxable income is
A) total income less deductions
Q29: A progressive tax is such that
A) tax
Q30: One difference between sales and excise taxes
Q31: The basic tax rate on taxable corporate
Q32: The marginal tax rate is
A) less than
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents