$$\begin{array} { c c }
\text { Taxable Income } & \text { Taxes Paid } \
\$ 20,000 & \$ 0 \
40,000 & 2,000 \
60,000 & 4,000 \
80,000 & 8,500
\end{array}$$
-If your taxable income increases from $20,000 to $40,000,your marginal tax rate is

Question

$$\begin{array} { c c } 
\text { Taxable Income } & \text { Taxes Paid } \
\$ 20,000 & \$ 0 \
40,000 & 2,000 \
60,000 & 4,000 \
80,000 & 8,500
\end{array}$$
-If your taxable income increases from $20,000 to $40,000,your marginal tax rate is

Quizplus · Accepted Answer

The marginal tax rate is calculated by the increase in taxes paid divided by the increase in taxable income. From $20,000 to $40,000, taxes increase from $0 to $2,000, and income increases by $20,000. Thus, the marginal tax rate is $2,000 / $20,000 = 10%.

-If Your Taxable Income Increases from $20,000 to $40,000,your Marginal