Suppose a certain business pays 10% tax on its first $10,000 in come,12% tax on income above $10,000 but below $40,000,and 22% tax on income above $40,000.Suppose the business earns $50,000 in income this year.It's marginal tax rate is ________.

Question

Quizplus · Accepted Answer

The marginal tax rate for a business earning $50,000 in income is the tax rate that applies to the next dollar earned. Since the business earns more than $40,000, it falls into the 22% tax bracket. Therefore, the marginal tax rate is 22%.

Suppose a Certain Business Pays 10% Tax on Its First