Question

Table 18-10
Income Tax BracketTax Rate
on the first $6,000 of taxable income10%
on the next $14,000 of taxable income15%
on the next $24,500 of taxable income25%
on the next $30,500 of taxable income30%

Table 18-10 shows the income tax brackets and tax rates for single taxpayers in Bauxhall.
Refer to Table 18-10. A tax exemption is granted for the first $10,000 earned per year. Suppose you earn $75,000.
a. What is the amount of taxes you will pay?
b. What is your average tax rate?
c. What is your marginal tax rate?

Answer

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