If the marginal tax rate is 20 percent, by how much must income have increased if your tax bill increases by $300?

Name: If the marginal tax rate is 20 percent, by how much must income have increased if your tax bill increases by $300?
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Quizplus · Accepted Answer

The formula for calculating the increase in income can be found by dividing the amount of the tax increase by the marginal tax rate. 
So, $300/0.20 = $1500. Therefore, income must have increased by $1,500 to result in a $300 increase in tax bill.

If the Marginal Tax Rate Is 20 Percent, by How