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John owed $ 1 0 , 0 0 0 in taxes on taxable income of $ 4 0 , 0 0 0 . If John

John owed $10,000 in taxes on taxable income of $40,000. If John earns an additional $1,000, he will pay an additional $280. Therefore:
Multiple choice question.
his marginal tax rate will increase to 29%
he will be at the 30% average tax rate after he earns the additional $1,000
his average tax rate is about 25%
his average tax rate is 28%

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