Chuck, a single taxpayer, earns $76,950 in taxable income and $11,300 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?

Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 S4.664 plus 22% of the excess over $40.525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 $ 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 47.843 plus 35% of the excess over $209,425 $ 523,600 S157.804.25 plus 37% of the excess over $523,600