Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in the State of New York bonds. (Use the U.S. tax rate schedule).

Required:

1. If Campbell earns an additional $15,000 of taxable income, what is her marginal tax rate on this income?
2. What is her marginal rate if, instead, she had $15,000 of additional deductions?

2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 9,525 10% of taxable income $ 9,525 $ 38,700 8952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $500,000 $45.689.50 plus 35% of the excess over $200,000 $500,000 S150,689.50 plus 37% of the excess over $500,000 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,050 10% of taxable income $ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050 $ 77,400 $165,000 $8,907 plus 22% of the excess over $77,400 $165,000 $315,000 $28,179 plus 24% of the excess over $165,000 $315,000 $400,000 $64,179 plus 32% of the excess over $315,000 $400,000 $600,000 $91,379 plus 35% of the excess over $400,000 $600,000 $161,379 plus 37% of the excess over $600,000 2 10:25 PM E ENG 1/30/20204