Chase Cutter has a marginal tax rate of 33 percent,a state income tax rate of 3.5 percent,and a city income tax rate of 0.5 percent.The tax for Social Security and Medicare is 7.65 percent.What would be the effective marginal tax rate on your last dollar of earnings?

Question

Quizplus · Accepted Answer

To find the effective marginal tax rate, we need to add up all the tax rates. So, the effective marginal tax rate is:
33% + 3.5% + 0.5% + 7.65% = 44.65%.
Therefore, the best choice is option D.

Chase Cutter Has a Marginal Tax Rate of 33 Percent,a