Refer to the corporate marginal tax rate information in Table 2.3 .

b-1	Compute the average tax rate for a corporation with exactly $335,001 in taxable income. (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

Average tax rate

%

b-2	What is the average tax rate for a corporation with exactly $18,333,334? (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

Average tax rate

%

c.

The 39 percent and 38 percent tax rates both represent what is called a tax bubble. Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $214,000. What would the new 39 percent bubble rate have to be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Bubble rate

%

Taxable Income Tax Rate 0- 50,000 75,000 75,001 100,000 100,001335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 15% 25 34 39 34 35 38 35 50,001 18,333,334