James, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Sewardbonds. (Use the U.Stax rate schedule.)

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?

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	$4,664 plus 22% of the excess over $40,525
$86,375	$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