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Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)

Required:

  1. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
  2. What is his marginal rate if, instead, he had $40,000 of additional deductions?

2.

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required:

  1. How much federal tax will he owe?
  2. What is his average tax rate?
  3. What is his effective tax rate?
  4. What is his current marginal tax rate?

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