Suppose the income tax rate is zero on the first $10,000;is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on all income above $70,000.Family A has income of $100,000 while Family B has income of $40,000.The marginal tax rate on the two families are

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The marginal tax rate is the rate at which the last dollar of income is taxed. Family A, with an income of $100,000, falls into the 40% tax bracket for income above $70,000. Family B, with an income of $40,000, falls into the 20% tax bracket for income between $30,000 and $50,000.

Suppose the Income Tax Rate Is Zero on the First