If Manny earns an additional $35,000 in taxable income in year 2014, what is his marginal tax rate (rounded) on this income?
A) 22.49%
B) 28.00%
C) 25.91%
D) 25.00%
E) None of these

Question

Quizplus · Accepted Answer

To determine marginal tax rate, we need the tax bracket for Manny's income. Assuming he is a single taxpayer, based on the 2014 tax bracket, an additional $35,000 of taxable income falls into the 25% tax bracket. Therefore, his marginal tax rate is 25.91% (rounded to the nearest hundredth).

If Manny Earns an Additional $35,000 in Taxable Income in Year