1. Harvey, a single taxpayer, earns $150,000 in taxable income and $10,000 in interest from an investment in city of Presque Isle Bonds. Using the U.S. tax rate schedule for year 2020, what is his tax liability? What is his average tax rate? What is his effective tax rate? If Harvey earned an additional $40,000 of taxable income, what is his marginal tax rate on this income?

Info: Over: $85,525 but not over: $163,300 the tax is: $14,605.50 plus 24% of the excess over $207,350