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zhuklara [117]
3 years ago
12

Miranda works 40 hours a week at a wage rate of ​$25. Thus, her total weekly income is ​$1000. On this​ income, she pays total t

axes of ​$80.00. ​However, she calculates that on the last hour that she​ works, she pays ​$3.75. Her average tax rate is 8%. What is her marginal tax rate?
Business
1 answer:
Vlad1618 [11]3 years ago
8 0

Answer:

15%

Explanation:

If Miranda works 40 hours a week at a wage rate of ​$25. and she ​however calculates that on the last hour that she​ works, she pays ​$3.75. then her marginal tax rate is derived as follows

<em>The marginal tax rate is the incremental tax paid on incremental income.</em>

From the scenario, we are given the following:

Weekly wage rate is $25.

Weekly tax pay is $3.75

Hence, Marginal tax rate  can be computed as = $3.75 / $25 = 15%

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