Ben Fasby has taxable income of $7,000,and the following tax rate schedule is applicable:
Taxable Income Tax Rate
$0 to $3,400 0 %
$3,400 to $5,500 12 %
$5,500 to $7,600 14 %
Ben's marginal tax rate is

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate at which the last dollar of income is taxed. Since Ben's taxable income is $7,000, which falls within the $5,500 to $7,600 range, his marginal tax rate is 14%.

Ben Fasby Has Taxable Income of $7,000,and the Following Tax