Answer:
A. Marginal tax rate is 34.02%
B. Marginal tax rate is 33.00%
Step by Step Explanation:
A. If Campbell earns an additional $15,000 of taxable income, her marginal tax rate on the income is 34.02 percent.
Marginal tax rate=Tax/Taxable income
($120,709.05-$115,606.25)=$5,102.8
($415,000 − $400,000)=$15,000
$5102.8/$15,000= 3.401
3.401 ×100= 34.02%
b.If Campbell instead had $15,000 of additional tax deductions, her marginal tax rate on the deductions would be 33.00 percent.
Marginal tax rate=Tax/Taxable income
($110,656.25-$115,606.25)= $4,950
($385,000 -$400,000)= $15,000
$4,950/$42,000= 0.33
0.33×100= 33.00%
