Assume that in year 1 you pay an average tax rate of 25 percent on a taxable Income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable Income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is Mutiple Choice percent. 40 percent 35 percent 20 percent

Assume that in year 1 you pay an average tax rate of 25 percent on a taxable Income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable Income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is Mutiple Choice percent. 40 percent 35 percent 20 percent

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 3CQQ

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