Question
An individual is subject to federal MTR of 25% and a state MTR of 6%. He also pays a 7.65% FICA tax rate on labor
An individual is subject to federal MTR of 25% and a state MTR of 6%. He also pays a 7.65% FICA tax rate on labor earnings. He itemizes deductions, and deducts his state income taxes when calculating federal income taxes. Suppose the individueal earns and additional $100 in wages.
a. How much additional in FICA taxes will he pay?
b. How much additional in state income taxes will he pay?
c. How much additional in federal income taxes will he pay?
d. What is his total MTR on labor earnings?
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
