Businesses and individuals are frequently concerned about their marginal tax rate, or the rate at which the next dollar earned is taxed In progressive taxation, the 80,001 st dollar earned is taxed at a higher rate than the 25.001 st dollar earned and at a lower rate than the 140,001 st dollar earned Use the following graph, showing the marginal tax rate for 2014 for single filers, to answer Exercises 23-26. Single Filers Income Bracket Rate 0–9075 10% 9076–36900 15% 36901–89350 25% 89351–186350 28% 186351–405100 33% 405101–406750 35% 406751+ 39.6% Iris earns $50,000 per year and is considering extra work that would earn her an extra $3000 annually At what rate will her tax liability grow if she takes the extra work (See Exercise 25 )?
Businesses and individuals are frequently concerned about their marginal tax rate, or the rate at which the next dollar earned is taxed In progressive taxation, the 80,001 st dollar earned is taxed at a higher rate than the 25.001 st dollar earned and at a lower rate than the 140,001 st dollar earned Use the following graph, showing the marginal tax rate for 2014 for single filers, to answer Exercises 23-26. Single Filers Income Bracket Rate 0–9075 10% 9076–36900 15% 36901–89350 25% 89351–186350 28% 186351–405100 33% 405101–406750 35% 406751+ 39.6% Iris earns $50,000 per year and is considering extra work that would earn her an extra $3000 annually At what rate will her tax liability grow if she takes the extra work (See Exercise 25 )?
Solution Summary: The author analyzes how Iris's tax liability will not grow if she takes the extra job. The 80,001st dollar earned is taxed at a higher rate than the
Businesses and individuals are frequently concerned about their marginal tax rate, or the rate at which the next dollar earned is taxed In progressive taxation, the 80,001 st dollar earned is taxed at a higher rate than the 25.001 st dollar earned and at a lower rate than the 140,001 st dollar earned Use the following graph, showing the marginal tax rate for 2014 for single filers, to answer Exercises 23-26.
Single Filers Income Bracket
Rate
0–9075
10%
9076–36900
15%
36901–89350
25%
89351–186350
28%
186351–405100
33%
405101–406750
35%
406751+
39.6%
Iris earns $50,000 per year and is considering extra work that would earn her an extra $3000 annually At what rate will her tax liability grow if she takes the extra work (See Exercise 25)?
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