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 $194,000. What would the new 39 percent bubble rate have to be?

Taxable Income Tax Rate

$0-50,000 15%

$50,001-75,000 25%

$75,001-100,000 34%

$100,001-335,000 39%

$335,001-10,000,000 34%