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Mars2501 [29]
3 years ago
7

If your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is a. 8 percent. b. 12.5 percent. c. 2

0 percent. d. unknown. We do not have enough information to answer this question.
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
3 0

If your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is: b. 12.5 percent.

Using this formula

Marginal tax rat=Tax payable/Taxable income×100

Where:

Tax payable=$5,000

Taxable income=$40,000

Let plug in the formula

Marginal tax rate=$5,000/$40,000×100

Marginal tax rate=12.5%

Inconclusion if your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is: b. 12.5 percent.

Learn more here:brainly.com/question/18488309

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