Chapter 2.6, Problem 24E

Businesses and individuals are frequently concerned about their marginal tax rate, or the rate at which the next dollar earned is taxed In progressive taxation, the 80,001 st dollar earned is taxed at a higher rate than the 25.001 st dollar earned and at a lower rate than the 140,001 st dollar earned Use the following graph, showing the marginal tax rate for 2014 for single filers, to answer Exercises 23-26.

Single Filers Income Bracket	Rate
0–9075	10%
9076–36900	15%
36901–89350	25%
89351–186350	28%
186351–405100	33%
405101–406750	35%
406751+	39.6%

Marcy and Tyrone work for the same marketing agency Because she is not yet a partner Marcy’s year-end income is approximately $95,000, Tyrone’s year-end income is approximately $185,000 Suppose one of them is to receive another $5000, 000, in income for the year Which one would keep more of that $5000 after taxes ? Why?