Suppose there is a 20% tax on the first $20,000 of taxable income, a 30% tax on taxable income above $20,000 until $35,000, and a 40% tax on all taxable income above $35,000. There is a $3,000 exemption per person in a family. What is the marginal tax rate for a single mother making $35,000 who has one child? a.30% b.40% c.10% d.20%

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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Suppose there is a 20% tax on the first $20,000 of taxable income, a 30% tax on taxable income above $20,000 until $35,000, and a 40% tax on all taxable income above $35,000. There is a $3,000 exemption per person in a family. What is the marginal tax rate for a single mother making $35,000 who has one child?

a.30%
b.40%
c.10%
d.20%
 
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