Chuck, a single taxpayer, earns $76,250 in taxable income and $10,900 in interest from an investment in
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Question:
Chuck, a single taxpayer, earns $76,250 in taxable income and $10,900 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
Required:
- If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
- What is his marginal rate if, instead, he had $40,000 of additional deductions?
(For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.)
a. Marginal tax rate- ______%
b. Marginal tax rate- ______%
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