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 $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16)) Bubble rate %
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 $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16)) Bubble rate %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Bubble rate | % |
Transcribed Image Text:Taxable Income
Tax Rate
2$
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
10,000,001–15,000,000
35
15,000,001–18,333,333
38
18,333,334+
35
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