Campbell, a single taxpayer, earns $410,000 in taxable income and $2,800 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule).

Required:

1. If Campbell earns an additional $17,000 of taxable income, what is her marginal tax rate on this income?
2. What is her marginal rate if, instead, she had $17,000 of additional deductions?

Note: For all requirements, do not round intermediate calculations. Round percentage answers to whole percent.

IndividualsSchedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 10,275	10% of taxable income
$ 10,275	$ 41,775	$1,027.50 plus 12% of the excess over $10,275
$ 41,775	$ 89,075	$4,807.50 plus 22% of the excess over $41,775
$ 89,075	$ 170,050	$15,213.50 plus 24% of the excess over $89,075
$ 170,050	$ 215,950	$34,647.50 plus 32% of the excess over $170,050
$ 215,950	$ 539,900	$49,335.50 plus 35% of the excess over $215,950
$ 539,900	—	$162,718 plus 37% of the excess over $539,900