Consider a country that taxes its citizens Individually according to the following rate sched hedule: Taxable Income First $30,000 Over $30,000 up to $60,000 Over $60,000 Marginal Tax Rate 10% 25% 40% Additionally, this country has a 30% surtax on taxes over $10,000. Hannah has $100,000 in total income, all of which is taxable. She does not qualify for any credits. Accounting for the surtax, what is the combined marginal tax rate associated with Hannah's last dollar earned?
Consider a country that taxes its citizens Individually according to the following rate sched hedule: Taxable Income First $30,000 Over $30,000 up to $60,000 Over $60,000 Marginal Tax Rate 10% 25% 40% Additionally, this country has a 30% surtax on taxes over $10,000. Hannah has $100,000 in total income, all of which is taxable. She does not qualify for any credits. Accounting for the surtax, what is the combined marginal tax rate associated with Hannah's last dollar earned?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider a country that taxes its citizens individually according to the following rate schedule:
Taxable Income
First $30,000
Over $30,000 up to $60,000
Over $60,000
Marginal Tax Rate
10%
25%
40%
Additionally, this country has a 30% surtax on taxes over $10,000. Hannah has $100,000 in total Income, all of which is taxable. She
does not qualify for any credits. Accounting for the surtax, what is the combined marginal tax rate associated with Hannah's last dollar
earned?
[NOTE: If necessary.iplease round your answer to the nearest percent. Enter the whole number corresponding to the percentage rate.
Do not enter the percent sign. For example, if your answer is 12 percent, you should enter 12 in the answer space, not 012.)
Hannah's combined marginal tax rate is
%.
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