Introduction to Taxation

Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the US. tax rate schedule for married filing jointly) Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,000 in deductions? Note: For all requirements, round your answers to 2 decimal places. Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40.000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly) Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate it, instead, they report an additional $100,000 in deductions? Note: For all requirements, round your answers to 2 decimal places