Refer to the table below:

2014 Tax Data
Tax Bracket	Marginal Tax Rate
$0-9,075	10%
$9,075-36,900	15
$36,900-89,350	25
$89,350-186,350	28
$186,350-405,100	33
$405,100-406,750	35
Over $406,750	39.6

Compute the taxable income and taxes for the following taxpayers below: Instructions: Enter your responses for taxable income to the nearest whole number and responses for tax rounded to two decimal places.

Taxpayer	Gross Income	Exemptions and Deductions	Taxable Income	Tax
A	$20,000	$4,000	$	$
B	$40,000	$16,000	$	$
C	$80,000	$34,000	$	$
D	$200,000	$110,000	$	$

Which taxpayer has (a) The highest nominal tax rate?

	Taxpayer B
	Taxpayer D
	Taxpayer C
	Taxpayer A

(b) The highest effective tax rate?

	Taxpayer B
	Taxpayer A
	Taxpayer C
	Taxpayer D

(c) The highest marginal tax rate?

	Taxpayer D
	Taxpayer A
	Taxpayer B
	Taxpayer C