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?
a. ($6,000 × 0.10 ) + ($14,000 × 0.15 ) + ($24,500 × 0.25 ) + ($20,500 × 0.30 ) = $600 + $2,100 + $6,125 + $6,150 = $14,975
b. approximately 20%
c. 30%
Economics
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