Assume that you have a marginal tax rate of 28 percent, a state income tax rate of 4 percent, and have a city income tax rate of 1 percent

The tax for Social Security and Medicare is 7.65 percent. What would be the effective marginal tax rate on your last dollar of earnings?
A) 28 percent
B) 32 percent
C) 33 percent
D) 40.65 percent
E) Cannot determine from the information provided

Answer: D

Business

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