Suppose there is a 10% tax on the first $20,000 of taxable income, a 20% tax on taxable income above $20,000 until $35,000, and a 30% tax on all taxable income above $35,000. There is a $5,000 exemption per person in a family. What is the marginal tax rate for a single mother making $42,000 who has one child? a, 40% b. 20% c. 10% d. 30%

Suppose there is a 10% tax on the first $20,000 of taxable income, a 20% tax on taxable income above $20,000 until $35,000, and a 30% tax on all taxable income above $35,000. There is a $5,000 exemption per person in a family. What is the marginal tax rate for a single mother making $42,000 who has one child? a, 40% b. 20% c. 10% d. 30%

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.10P

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