Question
Chuck, a single taxpayer, earns $177,500 in taxable income and $32,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax
Chuck, a single taxpayer, earns $177,500 in taxable income and $32,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.) USE 2015 TAX RATE SCHEDULE
a) If Chuck earns an additional $100,250 of taxable income, what is his marginal tax rate on this income?
B) What is his marginal rate if, instead, he had $100,250 of additional deductions?
Scot and Vidia, married taxpayers, earn $324,500 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
C) If Scot and Vidia earn an additional $85,250 of taxable income, what is their marginal tax rate on this income?
D) How would your answer differ if they, instead, had $85,250 of additional deductions? What would the marginal tax be?
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