Compute the tax rates for the three taxpayers shown in Table 33.1.Then use the table to answer the indicated question.
$\begin{array}{c}
\text { Taxpayer } & \begin{array}{c}
\text { Income } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Taxable } \
\text { Income } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Taxes } \
\text { Paid } \
\text { (Dollars) }
\end{array} & \begin{array}{c}
\text { Effective } \
\text { Tax Rate } \
\text { (Percent) }
\end{array} & \begin{array}{c}
\text { Nominal } \
\text { Tax Rate } \
\text { (Percent) }
\end{array} \
\hline 1 & \$ 200,000 & \$ 100,000 & \$ 6,000 & -\%& -\% \
2 & 100,000 & 80,000 & 8,000 & -\%&-\% \
3 & 60,000 & 48,000 & 12,000 & -\% & -\%&
\end{array}$
Table 33.1
Taxable Income and Tax Computations In Table 33.1, the nominal tax rate for taxpayer 3 is

Question

Quizplus · Accepted Answer

Taxpayer 3's taxable income falls within the $40,001-$85,000 bracket, which has a marginal tax rate of 25%. Therefore, the nominal tax rate for taxpayer 3 is 25%.

Compute the Tax Rates for the Three Taxpayers Shown in Table